Is Shreeshay Engi. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Shreeshay Engineering has moved from risky to very expensive. The company is currently overvalued, with a PE ratio of 311.22, an EV to EBIT of 39.34, and an ROE of only 0.59%. In comparison, peers such as Rail Vikas and Craftsman Auto have PE ratios of 58.94 and 61.32, respectively, indicating that Shreeshay's valuation is significantly higher than its industry counterparts.
The company's financial metrics reflect a concerning trend, particularly with a ROCE of just 0.05% and a PEG ratio of 0.00, suggesting that the stock is not generating adequate returns relative to its price. Additionally, Shreeshay's stock has underperformed the Sensex, with a year-to-date return of -29.8% compared to the Sensex's gain of 8.22%. This further reinforces the conclusion that Shreeshay Engineering is overvalued in the current market environment.