Is Shreeshay Engi. overvalued or undervalued?

As of 12 August 2025, the valuation grade for Shreeshay Engineering has moved from risky to very expensive, indicating a significant shift in perception regarding its market value. The company is currently considered overvalued, with a PE ratio of 39.40, an EV to EBIT ratio of 37.32, and a ROE of just 0.59%. These ratios suggest that investors are paying a premium for the stock relative to its earnings and equity returns.
When comparing Shreeshay Engineering to its peers, it stands out as having a higher PE ratio than Rail Vikas, which has a PE of 53.54, and a significantly higher EV to EBITDA ratio than AIA Engineering, which is at 22.19. The company's recent stock performance has been poor, with a year-to-date return of -36.52%, contrasting sharply with the Sensex's positive return of 2.68% during the same period. This further reinforces the notion that Shreeshay Engineering is overvalued in the current market environment.