Is Akar Auto Indust overvalued or undervalued?

As of 27 October 2025, Akar Auto Industries has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial ratios, which include a PE ratio of 28.00, an EV to EBITDA ratio of 9.88, and a ROCE of 17.63%. When compared to its peers, Akar Auto's PE ratio is lower than that of Rail Vikas, which has a PE of 57.73, indicating that Akar Auto is relatively more reasonably priced within the industry.
In the context of its performance, Akar Auto has significantly outperformed the Sensex, with a year-to-date return of 31.41% compared to the Sensex's 8.50%. This strong performance, coupled with its fair valuation, suggests that while the stock may not be undervalued, it is still a solid investment relative to its peers and the overall market.