Is Titagarh Rail overvalued or undervalued?

As of 14 August 2025, the valuation grade for Titagarh Rail has moved from expensive to fair. The company is currently fairly valued. Key ratios include a PE ratio of 45.32, an EV to EBITDA of 27.25, and a ROCE of 15.27%. In comparison, peers such as Rites, which is considered very expensive, has a PE of 31.19, while Texmaco Rail, rated as attractive, has a PE of 24.27.
Despite its fair valuation, Titagarh Rail has underperformed relative to the Sensex, with a year-to-date return of -26.73% compared to the Sensex's 3.15%. The company's high PE ratio suggests that while it is not overvalued, it may be priced for significant growth that could be challenging to achieve in the current market environment.