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 its valuation outlook. However, the company is still considered overvalued based on its current metrics. The price-to-earnings (PE) ratio stands at 43.60, while the price-to-book value is 4.61, and the EV to EBITDA ratio is also at 42.88. 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 of 43.60 is lower than that of Rail Vikas at 54.71 and Tube Investments at 90.7, but still higher than AIA Engineering at 25.89. The PEG ratio of 0.30 indicates potential growth relative to its price, but the low return on capital employed (ROCE) of 2.18% and return on equity (ROE) of 2.33% raise concerns about the company's profitability. Despite a recent positive performance against the Sensex in the short term, the long-term returns show a significant decline, reinforcing the view that Misquita Engineering is overvalued.