Is Shri Balaji overvalued or undervalued?

As of 14 October 2025, the valuation grade for Shri Balaji has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE Ratio of 16.01, an EV to EBITDA of 9.59, and a ROE of 14.66%.
In comparison to its peers, Shri Balaji's PE Ratio is notably lower than Rail Vikas, which has a PE of 58.07, but higher than Ircon International's attractive PE of 24.2. The valuation metrics suggest that while Shri Balaji's ratios may appear reasonable in isolation, they are elevated when viewed against the backdrop of its peer group, reinforcing the conclusion of overvaluation. Additionally, the company's stock has underperformed significantly over the past year, declining by 50.49% compared to a modest 0.07% return from the Sensex, further supporting the assessment of its current valuation status.