Is Carraro India overvalued or undervalued?

As of 22 September 2025, Carraro India has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 31.06, a Price to Book Value of 5.68, and an EV to EBITDA ratio of 16.81. In comparison to its peers, Bosch is considered expensive with a PE of 52.48, while Samvardhana Motherson is attractive with a PE of 33.93, indicating that Carraro India is positioned reasonably within its industry.
The company's return metrics also reflect its current valuation stance, with a ROCE of 20.93% and an ROE of 18.28%. Despite a recent stock performance that outpaced the Sensex over the last week and month, Carraro India has seen a year-to-date decline of 25.93%, contrasting with the Sensex's positive return of 5.15%. This suggests that while the stock may be fairly valued, it has faced significant headwinds in the market.