Is Trom Industries overvalued or undervalued?

As of 28 August 2025, the valuation grade for Trom Industries has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 19.15, an EV to EBITDA of 13.71, and a ROCE of 38.54%.
In comparison to peers, Larsen & Toubro, which is rated as fair, has a PE Ratio of 31.63, while Siemens, categorized as very expensive, has a PE Ratio of 56.82. This suggests that Trom Industries is trading at a lower valuation multiple than some of its peers, yet still falls into the overvalued category. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -61.2% compared to a 3.62% gain in the Sensex, reinforcing the notion of overvaluation.