Back to Coromandel Engineering Company Limited

Coromandel Engineering Company Limited — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Real estate development industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Real estate development · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Coromandel Engineering Company Limited COROENGG · you	₹184 Cr	150.5×	439.1×	—	288.0%	0.0%	—
Sector median	—	24.9×	2.4×	13.0×	26.4%	0.3%	20.4%
Meghna Infracon Infrastructure Limited MIIL	₹1,480 Cr	326.0×	98.8×	—	30.2%	0.3%	—
Shriram Properties Limited SHRIRAMPPS	₹1,332 Cr	45.4×	0.8×	—	1.8%	0.3%	—
Modis Navnirman Limited MODIS	₹1,227 Cr	14.4×	3.8×	12.3×	26.4%	10.2%	28.5%
Arihant Superstructures Limited ARIHANTSUP	₹1,052 Cr	23.6×	3.0×	13.8×	12.7%	8.4%	12.3%
India Homes Limited INDIAHOMES	₹1,038 Cr	44.2×	31.4×	—	71.3%	—	—
Unitech Limited UNITECH	₹1,035 Cr	-0.6×	-0.3×	—	51.4%	-5.9%	—
Suraj Estate Developers Limited SURAJEST	₹1,027 Cr	13.9×	1.8×	—	12.7%	0.2%	—
B-RIGHT REALESTATE LIMITED BRRL	₹968 Cr	26.2×	—	—	—	—	—

Peer comparison verdict

Coromandel trades at a premium to peers (P/E 150.5× vs median 24.9×), but its higher ROE of 288.0% (sector 26.4%) justifies much of that premium — quality rarely comes cheap.

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

20% weight · 6 peers

Sector median PE24.9×

Fair value via PE₹9

50% weight · 4 peers

Sector median PB2.4×

Fair value via PB₹0

EV/EBITDA

30% weight · 2 peers

Sector median EV/EBITDA13.0×

Fair value via EV/EBITDA—

Blended peer fair value₹3

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.