Is Shreeshay Engi. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Shreeshay Engineering has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company is currently overvalued, with a PE ratio of 282.93, an EV to EBIT of 35.38, and a ROE of only 0.59%. In comparison to its peers, Rail Vikas has a PE ratio of 57.64 and AIA Engineering stands at 28.68, both suggesting that Shreeshay is trading at a premium without corresponding performance metrics.
The company's financial ratios highlight a concerning picture, particularly with a PEG ratio of 0.00 and a ROCE of just 0.05%, which raises questions about its growth potential relative to its valuation. Additionally, Shreeshay's stock has underperformed against the Sensex, with a year-to-date return of -36.18% compared to the Sensex's 7.77%, further reinforcing the notion that the stock is overvalued in the current market environment.