Is R J Shah & Co overvalued or undervalued?

As of 3 November 2025, the valuation grade for R J Shah & Co has moved from risky to attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE Ratio of 2.82, a Price to Book Value of 0.04, and an EV to EBITDA of 4.53, all of which suggest that the stock is trading at a substantial discount compared to its intrinsic value.
In comparison with peers, R J Shah & Co's PE Ratio of 2.82 is notably lower than that of Rail Vikas, which stands at 57.52, and significantly below Tube Investments at 90.93, both categorized as expensive. This stark contrast in valuation metrics reinforces the attractiveness of R J Shah & Co. Additionally, the company's recent stock performance has outpaced the Sensex over the past week, with a return of 0.19% compared to the Sensex's decline of 0.94%, further indicating positive momentum in its valuation narrative.