Is Megatherm Indu. overvalued or undervalued?

As of 13 October 2025, the valuation grade for Megatherm Indu. has moved from attractive to very attractive. The company is currently considered undervalued. Key ratios include a PE ratio of 24.11, an EV to EBIT of 15.43, and a ROCE of 26.91%.
In comparison to peers, Megatherm Indu. has a significantly lower PE ratio than Rail Vikas, which stands at 59.31, and AIA Engineering at 27.56. This suggests that Megatherm Indu. is trading at a more favorable valuation relative to its peers. Notably, the stock has underperformed against the Sensex, with a year-to-date return of -15.63% compared to the Sensex's 6.69%, reinforcing the undervaluation narrative.