Is Belrise Industri overvalued or undervalued?

As of 1 June 2025, the valuation grade for Belrise Industri has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its key financial ratios, which include a PE ratio of 27.01, an EV to EBITDA of 11.79, and a Price to Book Value of 3.74. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Belrise Industri's valuation appears high, especially when looking at companies like Samvardhana Motherson International Ltd., which has a PE ratio of 29.14 and is rated attractive, and Endurance Technologies Ltd., which is rated fair with a PE ratio of 42.27. The notable disparity in valuation grades and ratios indicates that Belrise Industri may not justify its current price level. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 11.62% compared to the Sensex's 1.36%, but this does not alter the overall conclusion that the stock is overvalued.