Is Affordable Robo. overvalued or undervalued?

As of 18 July 2025, the valuation grade for Affordable Robo. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial ratios. The price-to-earnings (PE) ratio stands at 87.49, significantly higher than peers like Rail Vikas at 61.18 and Shriram Pistons at 21.23. Additionally, the EV to EBITDA ratio is 40.61, which is also elevated compared to the industry average.
Given these metrics, Affordable Robo. is considered overvalued. The return on capital employed (ROCE) is only 7.76%, and the return on equity (ROE) is at 5.38%, both of which are relatively low and suggest inefficiencies in generating returns. The company's stock has underperformed against the Sensex, particularly year-to-date with a decline of 28.83% compared to the Sensex's gain of 4.63%. This further reinforces the notion that the stock is not a favorable investment at its current valuation.