Is MRC Agrotech overvalued or undervalued?

As of 19 August 2025, MRC Agrotech's valuation grade has moved from does not qualify to expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios reveal a PE Ratio of 63.31, an EV to EBIT of 62.34, and a Price to Book Value of 2.11, which are substantially higher than industry norms.
In comparison to its peers, MRC Agrotech's PE Ratio is notably higher than that of PTC India, which stands at 9.15, and D.P. Abhushan at 30.16, both of which are in a more favorable valuation position. The PEG Ratio of MRC Agrotech is exceptionally low at 0.03, which could suggest potential growth; however, the negative ROCE of -1.38% and low ROE of 2.97% raise concerns about its profitability. Despite recent strong stock performance against the Sensex, with a 1Y return of 176.88% compared to the Sensex's 1.52%, the overall valuation metrics suggest that MRC Agrotech is overvalued in the current market.