Is Titagarh Rail overvalued or undervalued?

As of 17 November 2025, the valuation grade for Titagarh Rail has moved from expensive to very expensive, indicating a significant concern regarding its current market valuation. The company appears to be overvalued based on key financial ratios, including a PE ratio of 60.25, an EV to EBITDA of 33.93, and a Price to Book Value of 4.67. These figures suggest that investors are paying a premium for the stock relative to its earnings and assets.
In comparison to its peers, Titagarh Rail's valuation stands out unfavorably; for instance, Rites has a PE ratio of 29.51 and an EV to EBITDA of 16.55, while Texmaco Rail, considered very attractive, has a PE ratio of 26.1 and an EV to EBITDA of 14.56. The stark differences in these ratios highlight that Titagarh Rail is not only overvalued but also lacks the growth prospects that would justify such a high valuation. Despite recent stock performance showing a 3.90% return over the past week compared to a 1.69% return of the Sensex, the longer-term outlook remains concerning, with a year-to-date decline of 20.38% against the Sensex's gain of 8.72%.