Is Castrol India overvalued or undervalued?

As of 4 July 2025, the valuation grade for Castrol India has moved from very expensive to expensive. This indicates a slight improvement in perceived value, yet the company remains on the higher end of the valuation spectrum. Based on the analysis, Castrol India is considered overvalued at its current price of 220.85, especially when compared to its peers.
Key ratios for Castrol India include a PE ratio of 23.13, an EV to EBITDA of 15.83, and a PEG ratio of 3.05. In comparison, Gulf Oil Lubricants, which is rated very attractive, has a PE ratio of 17.31 and an EV to EBITDA of 12.28, while Veedol Corporation, also rated very attractive, shows a PE ratio of 17.11 and an EV to EBITDA of 15.37. Additionally, while Castrol India has a strong ROCE of 126.91% and ROE of 41.45%, its high valuation ratios suggest that it is priced above its intrinsic value. Despite a recent positive stock performance compared to the Sensex over the year, the overall valuation indicates that Castrol India is not a compelling investment at this time.