Is Nitiraj Engineer overvalued or undervalued?

As of 15 October 2025, Nitiraj Engineer has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 34.00, an EV to EBITDA of 16.99, and a Price to Book Value of 2.53. In comparison to its peers, Thermax is considered expensive with a PE of 55.33, while BEML Ltd is very expensive at a PE of 62.28, indicating that Nitiraj Engineer's valuation is more reasonable within its industry context.
Despite its fair valuation, Nitiraj Engineer has underperformed the Sensex in recent periods, with a year-to-date return of -10.13% compared to the Sensex's 7.10%. The company's ROCE stands at 9.55% and ROE at 7.43%, which are relatively modest figures, suggesting that while the stock is fairly valued, there may be concerns regarding its growth prospects compared to its peers.