Is Misquita Engg. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Misquita Engineering has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued, with a PE ratio of 42.19, an EV to EBIT ratio of 41.48, and a Price to Book Value of 4.46. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Misquita Engineering's PE ratio is lower than that of Rail Vikas, which stands at 55.71, but higher than AIA Engineering's 27.72. The PEG ratio of 0.29 indicates potential growth, but the low ROCE of 2.18% and ROE of 2.33% raise concerns about the company's profitability relative to its valuation. Despite a recent one-month stock return of 12.08%, which outperformed the Sensex's decline of 2.30%, the overall valuation metrics suggest that Misquita Engineering is not a compelling investment at its current price of 90.00.