Is Tankup Engi. overvalued or undervalued?

As of 3 June 2025, the valuation grade for Tankup Engineering has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its high PE ratio of 98.50, a price to book value of 40.65, and an EV to EBITDA ratio of 61.30. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Tankup Engineering's valuation metrics are notably higher; for instance, Thermax Ltd. has a PE ratio of 66.31 and an EV to EBITDA of 45.24, while BEML Ltd. shows a PE of 62.34 and an EV to EBITDA of 36.51. This stark contrast highlights that Tankup Engineering is priced at a much higher valuation than its industry counterparts. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-month return of 76.91% compared to the Sensex's 4.63%, further reinforcing the notion of overvaluation in the current market context.