Is Misquita Engg. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Misquita Engineering has moved from risky to very expensive, indicating a significant shift in perception regarding its market value. The company is currently assessed as overvalued. Key ratios supporting this conclusion include a PE ratio of 46.41, an EV to EBIT of 45.70, and a Price to Book Value of 4.91, all of which are considerably high compared to industry norms.
In comparison to its peers, Misquita Engineering's valuation stands out as particularly elevated. For instance, Rail Vikas has a PE ratio of 63.64, while AIA Engineering shows a PE of 26.26, both of which suggest that Misquita's valuation is not justified given its lower return metrics, such as a ROCE of just 2.18% and ROE of 2.33%. Furthermore, the company's recent stock performance has been lackluster, with a year-to-date return of -29.59%, contrasting sharply with the Sensex's positive return of 5.74% over the same period, reinforcing the notion that Misquita Engineering is currently overvalued.