Is Castrol India overvalued or undervalued?

As of 14 July 2025, the valuation grade for Castrol India has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 23.34, an EV to EBITDA of 15.98, and a PEG ratio of 3.08, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Gulf Oil Lubricants has a more attractive PE ratio of 16.78 and an EV to EBITDA of 11.88, while Veedol Corporation also shows a favorable PE of 16.98. These comparisons highlight that Castrol India is priced significantly higher than its competitors, reinforcing the view of overvaluation. Despite a recent strong performance with a year-to-date return of 12.95% compared to the Sensex's 5.27%, the overall valuation metrics suggest that investors may want to exercise caution.