Is Craftsman Auto overvalued or undervalued?

As of 2 September 2025, Craftsman Auto has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 71.05, an EV to EBITDA ratio of 20.84, and a Price to Book Value of 5.79. In comparison to its peers, Rail Vikas is considered expensive with a PE ratio of 57.91, while Ircon International is also rated fair with a PE of 24.6, indicating that Craftsman Auto's valuation is more aligned with its fair rating.
Craftsman Auto's recent stock performance has outpaced the Sensex, with a year-to-date return of 29.79% compared to the Sensex's 2.58%. This strong performance, along with its fair valuation, suggests that the market has recognized its potential despite the high PE ratio relative to some peers. Overall, the company appears to be fairly valued within its industry context.