Is MM Forgings overvalued or undervalued?

As of 3 July 2023, the valuation grade for MM Forgings has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered fairly valued. Key ratios include a PE ratio of 15.21, an EV to EBITDA of 9.08, and a ROE of 13.66%.
In comparison to peers, Bharat Forge has a significantly higher PE ratio of 59.98, while CIE Automotive, also attractive, has a PE of 21.15. This suggests that MM Forgings is priced more conservatively relative to its peers. Notably, the stock has underperformed relative to the Sensex over the past year, with a return of -34.84% compared to the Sensex's 7.60%, reinforcing the notion that the stock may be undervalued in the current market context.