Is Titagarh Rail overvalued or undervalued?

As of 20 June 2025, the valuation grade for Titagarh Rail has moved from fair to expensive, indicating a shift in its perceived value. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 42.44, an EV to EBITDA of 27.32, and a Price to Book Value of 4.70. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with its peers, Titagarh Rail's PE ratio is significantly higher than that of Texmaco Rail, which stands at 26.03, indicating that Titagarh Rail may not justify its higher valuation. Additionally, Rites is categorized as very expensive with a PE of 34.28, while Oriental Rail is rated fair with a PE of 33.75. The recent performance of Titagarh Rail has also been underwhelming, with a year-to-date return of -21.61%, contrasting sharply with the Sensex's gain of 5.46% during the same period. This further reinforces the notion that the stock may be overvalued in the current market environment.