Is Power Mech Proj. overvalued or undervalued?

As of 15 October 2025, the valuation grade for Power Mech Projects has moved from attractive to very attractive, indicating a significant positive shift in its market perception. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a PE ratio of 27.55, an EV to EBITDA of 13.50, and a ROCE of 23.82%.
In comparison to peers, Power Mech Projects has a more favorable valuation than Rail Vikas, which is deemed expensive with a PE ratio of 59.37, and AIA Engineering, also very expensive with a PE of 27.96. Despite a recent decline in stock price, the company's strong historical performance, with a 3-year return of 203.09% compared to the Sensex's 42.62%, reinforces the undervaluation narrative.