Is Transrail Light overvalued or undervalued?

As of 5 September 2025, the valuation grade for Transrail Light has moved from expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 30.70, an EV to EBITDA of 15.11, and a ROCE of 32.19%.
In comparison to its peers, Transrail Light's PE Ratio is lower than K E C International's 37.38 and slightly higher than Kalpataru Projects' 30.68, while its EV to EBITDA is competitive against K E C International's 16.43. The PEG Ratio stands at 0.00, suggesting potential for growth relative to its price. Notably, Transrail Light has outperformed the Sensex with a year-to-date return of 40.33%, compared to the Sensex's 3.29%, reinforcing its attractive valuation.