Is Quality RO Indu. overvalued or undervalued?

As of 18 November 2025, the valuation grade for Quality RO Indu. has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 18.84, an EV to EBITDA of 12.04, and a PEG ratio of 1.73, which suggest that the company is trading at a premium compared to its earnings growth potential.
In comparison to peers, Quality RO Indu. has a lower PE ratio than Altius Telecom, which stands at 51.84, but is significantly higher than Sagility, which is rated fair with a PE of 29.9. The high valuation of Quality RO Indu. is further supported by its return on capital employed (ROCE) of 15.39% and return on equity (ROE) of 14.66%, yet these figures do not justify its very expensive rating. Notably, the company's stock has underperformed against the Sensex year-to-date, with a return of -9.87% compared to the Sensex's 8.36%, reinforcing the notion of overvaluation.