Is Benara Bearings overvalued or undervalued?

As of 18 August 2025, the valuation grade for Benara Bearings has moved from does not qualify to risky, indicating a significant deterioration in its financial health. The company is currently assessed as overvalued. Key ratios reflect this concerning trend, with a PE ratio of -1.02, an EV to EBIT of -5.11, and a ROE of -123.55%, which highlights severe profitability issues.
In comparison to its peers, Benara Bearings stands out negatively; for instance, NRB Bearings has a PE ratio of 20.33 and is classified as fair, while Schaeffler India is deemed very expensive with a PE of 60.92. The stark contrast in valuation metrics underscores the challenges Benara Bearings faces in the industrial manufacturing sector. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -20.93% compared to the Sensex's 4.01%, further reinforcing the perception of overvaluation.