Is Misquita Engg. overvalued or undervalued?

As of 4 July 2025, the valuation grade for Misquita Engineering has moved from risky to very expensive. This indicates a significant shift in perception regarding the company's valuation. Based on the current analysis, Misquita Engineering is overvalued. The company has a PE ratio of 29.55, an EV to EBITDA ratio of 28.84, and a Price to Book Value of 3.13, all of which are considerably high compared to its peers.
In comparison, Ircon International, which is rated fair, has a PE ratio of 25.79 and an EV to EBITDA of 21.15, while AIA Engineering, also very expensive, has a PE ratio of 29.41 but a lower EV to EBITDA of 23.86. These comparisons highlight that Misquita Engineering's valuation metrics are not justified when viewed alongside its peers. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -43.1% compared to a 6.77% return for the Sensex, further reinforcing the notion that it is overvalued.