Is Texmaco Rail overvalued or undervalued?

As of 1 April 2025, the valuation grade for Texmaco Rail has moved from attractive to very attractive, indicating a stronger outlook for the company. The stock is currently considered undervalued. Key ratios include a PE ratio of 27.45, an EV to EBITDA of 16.04, and a PEG ratio of 0.25, which suggests that the stock is trading at a favorable valuation compared to its growth prospects.
In comparison to its peers, Texmaco Rail's valuation metrics are more appealing; for instance, Rites has a PE ratio of 37.48 and an EV to EBITDA of 21.43, while Titagarh Rail is even higher at 46.07 and 29.63, respectively. Despite a recent downturn in year-to-date performance, where Texmaco Rail has returned -9.60% compared to the Sensex's 5.61%, its long-term performance over three years shows a remarkable return of 290.20%, significantly outperforming the Sensex's 49.17%. This reinforces the view that Texmaco Rail is currently undervalued in the market.