Is Mehai Technology overvalued or undervalued?

As of 20 October 2025, the valuation grade for Mehai Technology has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company is still considered overvalued. Key ratios include a PE ratio of 64.75, an EV to EBITDA of 37.84, and a PEG ratio of 0.10, which suggests that the stock price is not justified by its earnings growth potential.
In comparison to peers, Mehai Technology's PE ratio is significantly higher than that of Apar Industries, which stands at 39.03, and even higher than ABB at 61.65. The EV to EBITDA ratio also reflects a premium compared to peers, with Mehai Technology at 37.84 versus Apar Industries at 20.96. The recent performance of Mehai Technology has been poor, with a year-to-date return of -54.92%, contrasting sharply with the Sensex's return of 7.97%, reinforcing the view that the stock may be overvalued in its current state.