Is Misquita Engg. overvalued or undervalued?

As of 26 August 2025, Misquita Engineering's valuation grade has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 43.60, while the EV to EBITDA is also at 42.88, both of which are significantly higher than many of its peers. For instance, Rail Vikas has a PE ratio of 54.71 and an EV to EBITDA of 66.96, while Ircon International, considered attractive, has a PE ratio of 23.32 and an EV to EBITDA of 18.49.
Despite the high ratios, Misquita Engineering's ROCE and ROE are quite low at 2.18% and 2.33%, respectively, which further supports the conclusion that the company is overvalued. The stock has underperformed significantly over the past year with a return of -40.38%, while the Sensex has only declined by 1.12%. This performance, combined with the high valuation ratios, suggests that Misquita Engineering is not a favorable investment at this time.