Is Ranjeet Mechatr. overvalued or undervalued?

As of 2 July 2025, the valuation grade for Ranjeet Mechatr. has moved from risky to very expensive. The company is currently overvalued, as indicated by its high PE ratio of 48.64, an EV to EBITDA ratio of 25.82, and a PEG ratio of 0.59. In comparison to peers, Elitecon International has a significantly higher PE ratio of 159.92, while Lloyds Enterprises stands at 185.85, both of which also reflect very expensive valuations.
Despite Ranjeet Mechatr.'s impressive year-to-date stock return of 528.02%, which far outpaces the Sensex's 6.75%, the current valuation metrics suggest that the stock is not justified at its current price of 12.16. The company's low ROE of 4.69% and ROCE of 7.46% further support the conclusion that it is overvalued in the current market environment.