Is Shri Balaji overvalued or undervalued?

As of 13 October 2025, the valuation grade for Shri Balaji has moved from very expensive to expensive. The company appears to be overvalued at its current price of 123.85, especially when considering its PE ratio of 15.55 and an EV to EBITDA ratio of 9.35. The ROCE stands at 14.50%, which is decent, but the overall valuation metrics suggest a premium that may not be justified given the recent performance.
In comparison to its peers, Shri Balaji's PE ratio is significantly lower than that of Rail Vikas, which has a PE of 59.31, and Tube Investments, which stands at 92.71. This indicates that while Shri Balaji is expensive, it is relatively more attractive compared to some of its peers. However, the stock has underperformed the Sensex, with a year-to-date return of -22.59% compared to the Sensex's 5.36%. Overall, the combination of these factors leads to the conclusion that Shri Balaji is overvalued in the current market environment.