Is Sansera Enginee. overvalued or undervalued?

As of 17 September 2025, the valuation grade for Sansera Engineering has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 41.43, an EV to EBITDA of 18.13, and a PEG ratio of 11.12, which are significantly higher than industry norms, suggesting that the stock price may not be justified by its earnings growth potential.
In comparison to peers, Sansera's PE ratio is notably higher than that of Ircon International, which stands at 26.33, and AIA Engineering at 26.45, both of which are considered fairly valued. The high valuation ratios, coupled with a relatively low ROE of 7.82% and a dividend yield of only 0.17%, further reinforce the notion that Sansera is overvalued. Despite recent strong stock performance against the Sensex, particularly a 7.12% return over the past week compared to the Sensex's 1.56%, the overall valuation metrics suggest caution for potential investors.