Is Carraro India overvalued or undervalued?

As of 8 July 2025, Carraro India has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 30.10, a Price to Book Value of 6.74, and an EV to EBITDA of 16.29. In comparison to its peers, Samvardh. Mothe. is valued attractively with a PE of 28.54 and an EV to EBITDA of 11.32, while Bosch is also expensive with a PE of 52 and an EV to EBITDA of 44.81.
The stock has underperformed relative to the Sensex, particularly year-to-date, where it has declined by 28.38% compared to the Sensex's gain of 7.13%. This performance, alongside the high valuation ratios, reinforces the assessment that Carraro India is overvalued in the current market environment.