Is Mewar Hi-Tech overvalued or undervalued?

As of 8 August 2025, Mewar Hi-Tech's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios reveal a PE ratio of 9.27, an EV to EBITDA of 6.43, and a Price to Book Value of 3.01, which are notably lower than its peers. For instance, Thermax has a PE ratio of 58.13 and an EV to EBITDA of 38.32, while BEML Ltd shows a PE of 54.91 and an EV to EBITDA of 32.21, highlighting Mewar Hi-Tech's relative undervaluation in terms of these metrics.
Despite the lower ratios, Mewar Hi-Tech's high ROE of 32.47% and ROCE of 19.97% suggest strong profitability, yet the overall valuation remains concerning. The stock has underperformed compared to the Sensex, with a year-to-date return of -18.17% against the Sensex's 2.20%, reinforcing the notion that the stock is overvalued in the current market context.