Is Carraro India overvalued or undervalued?

As of 23 September 2025, Carraro India has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 30.95, an EV to EBITDA of 16.74, and a ROE of 18.28%. In comparison to its peers, Samvardhana Motherson has a higher PE of 34.59 and an EV to EBITDA of 12.60, while TVS Holdings shows a more favorable EV to EBITDA of 7.22 but a lower PE of 20.79.
Despite a challenging year-to-date return of -26.37% compared to a 5.07% gain in the Sensex, Carraro India's strong financial ratios and improved valuation grade suggest a compelling investment opportunity. The company's PEG ratio of 0.00 indicates significant growth potential, further reinforcing its undervalued status in the current market.