Is Bharat Gears overvalued or undervalued?

As of 13 November 2025, Bharat Gears' valuation grade has moved from attractive to fair. The company is currently assessed as overvalued, primarily due to its negative PE ratio of -20.91 and a low ROE of -7.15%. Additionally, the EV to EBIT ratio stands at a high 54.39, indicating a potential overvaluation compared to its earnings capacity.
In comparison to its peers, Bharat Gears' valuation metrics appear less favorable. For instance, Samvardh. Mothe. has a PE ratio of 33.73 and an EV to EBITDA of 12.32, while Bosch maintains a PE of 48.43 and an EV to EBITDA of 43.63, both of which suggest stronger market positions. Although Bharat Gears has outperformed the Sensex over the past year with a return of 12.65% compared to the Sensex's 8.74%, the overall valuation metrics indicate that the stock is not positioned favorably in the current market landscape.