Is Shreeshay Engi. overvalued or undervalued?

As of 6 October 2025, Shreeshay Engineering has moved from a valuation grade of risky to very expensive. The company is currently overvalued, with a PE ratio of 43.57, an EV to EBIT ratio of 39.34, and a Price to Book Value of 1.82. In comparison to its peers, Rail Vikas has a PE ratio of 60.62, while Ircon International, which is rated attractive, has a significantly lower PE of 24.28, highlighting the premium Shreeshay is trading at despite its low ROCE of 0.05% and ROE of 0.59%.
The stock has shown a return of -29.8% year-to-date, contrasting sharply with the Sensex's gain of 4.67% in the same period, further supporting the notion of overvaluation. Given these metrics and the significant disparity with its peers, Shreeshay Engineering appears to be trading at a level that does not justify its financial performance.