Is Castrol India overvalued or undervalued?

As of 28 July 2025, the valuation grade for Castrol India has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 22.90, an EV to EBITDA of 15.66, and a PEG ratio of 3.02, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to peers, Gulf Oil Lubricants has a more attractive PE ratio of 16.22, while Veedol Corporation also presents a favorable PE of 16.48. These comparisons highlight that Castrol India is priced higher than its competitors without a corresponding justification in growth or profitability metrics. Additionally, while the stock has shown a year-to-date return of 10.85%, it has underperformed the Sensex over the past year, which returned -0.54%. This context reinforces the assessment that Castrol India is overvalued in the current market environment.