Is Bhagwati Auto overvalued or undervalued?

As of 17 November 2025, Bhagwati Auto's valuation grade has moved from fair to attractive, indicating a positive shift in its market position. The company is currently assessed as undervalued, supported by a PE ratio of 16.46, an EV to EBITDA of 9.74, and a PEG ratio of 0.23, all of which suggest strong growth potential relative to its price.
In comparison to its peers, Bhagwati Auto's valuation metrics stand out; for instance, Bharat Forge has a significantly higher PE ratio of 61.18, while CIE Automotive, another attractive peer, has a PE of 20.38. This positions Bhagwati Auto favorably within the auto components sector, particularly given its robust ROCE of 25.72% and ROE of 20.14%. Additionally, Bhagwati Auto has outperformed the Sensex significantly over various time frames, with a year-to-date return of 31.87% compared to the Sensex's 8.72%, reinforcing its attractiveness as an investment.