Is Winsol Engineers overvalued or undervalued?

As of 28 August 2025, the valuation grade for Winsol Engineers has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its key financial ratios, which include a PE Ratio of 21.09, an EV to EBIT of 15.06, and an EV to EBITDA of 14.71. These figures suggest that the stock is trading at a premium compared to its earnings and operational performance.
In comparison to its peers, Winsol Engineers' valuation appears inflated, especially when juxtaposed with Rail Vikas, which has a PE of 54.01, and AIA Engineering, with a PE of 25.8. While Winsol Engineers boasts impressive ROCE and ROE figures of 63.09% and 66.01% respectively, the overall valuation metrics indicate that it is not justified at its current price of 207.35. Additionally, the stock has underperformed significantly over the past year, with a return of -43.34%, contrasting sharply with the Sensex's decline of only -2.20%, further reinforcing the notion of overvaluation.