Is Megatherm Indu. overvalued or undervalued?

As of 25 September 2025, the valuation grade for Megatherm Indu. has moved from attractive to very attractive, indicating a strong improvement in its investment appeal. The company is currently considered undervalued, with a PE ratio of 24.89, an EV to EBITDA ratio of 14.19, and a ROCE of 26.91%. These metrics suggest that the company is performing well relative to its earnings and capital efficiency.
In comparison to its peers, Megatherm Indu. stands out against Rail Vikas, which has a significantly higher PE ratio of 60.64, and Ircon International, which has a PE ratio of 24.36. This indicates that Megatherm Indu. is more attractively priced relative to its earnings potential. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -12.87% compared to the Sensex's 5.27%, the underlying valuation metrics suggest that it presents a compelling investment opportunity at its current price of 281.55.