Is Titagarh Rail overvalued or undervalued?

As of 16 May 2025, the valuation grade for Titagarh Rail has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 46.07, an EV to EBITDA ratio of 29.63, and a Price to Book Value of 5.10, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Titagarh Rail's valuation appears high, especially when contrasted with Texmaco Rail, which has a PE ratio of 27.45 and an EV to EBITDA of 16.04, categorizing it as very attractive. Rites is classified as very expensive with a PE of 37.48, but still lower than Titagarh Rail. Despite recent strong stock performance against the Sensex, with a 1-month return of 40.76% compared to the Sensex's 3.88%, the overall valuation metrics suggest that Titagarh Rail is not justified at its current price level.