Is Mehai Technology overvalued or undervalued?

As of 28 July 2025, the valuation grade for Mehai Technology has moved from very expensive to expensive. Based on the analysis, the company is currently overvalued. The PE ratio stands at 63.67, significantly higher than peers such as Apar Industries with a PE of 42.55 and HPL Electric at 37.68. Additionally, the EV to EBITDA ratio is 38.86, which further supports the overvaluation assessment when compared to the industry averages.
Notably, Mehai Technology's PEG ratio is exceptionally low at 0.21, suggesting potential growth that is not reflected in its current price. However, the high PE and EV ratios indicate that investors are paying a premium for the stock, which does not align with its earnings and cash flow metrics. Recent stock performance shows a decline of 51.72% year-to-date, contrasting sharply with a modest 3.52% gain in the Sensex, reinforcing the overvaluation narrative.