Is Titagarh Rail overvalued or undervalued?

As of 14 August 2025, the valuation grade for Titagarh Rail has moved from expensive to fair. Based on the analysis, the company appears to be fairly valued at this time. Key ratios include a PE ratio of 45.32, an EV to EBITDA of 27.25, and a ROE of 11.14%.
In comparison to its peers, Titagarh Rail's PE ratio is significantly higher than Texmaco Rail, which stands at 24.27, indicating that while Titagarh Rail is fairly valued, it is still priced at a premium compared to some competitors. Additionally, Oriental Rail, also rated fair, has a PE of 33.68. The recent performance of Titagarh Rail shows a substantial decline in stock returns, with a year-to-date drop of 26.73%, contrasting sharply with the Sensex's positive return of 3.15% during the same period, further emphasizing the need for cautious evaluation of its current market position.