Is Megatherm Indu. overvalued or undervalued?

As of 23 September 2025, the valuation grade for Megatherm Indu. has moved from attractive to very attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 24.31, an EV to EBIT of 15.57, and a ROCE of 26.91%.
In comparison to its peers, Megatherm Indu. stands out with a significantly lower PE ratio than Rail Vikas, which has a PE of 62.36, and Tube Investments, which has a PE of 98.51. This suggests that Megatherm Indu. is trading at a more favorable valuation relative to these competitors. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 13.8% versus a 6.45% gain for the index, the underlying financial metrics indicate a strong potential for value appreciation.