Is Galaxy Bearings overvalued or undervalued?

As of 26 May 2025, the valuation grade for Galaxy Bearings has moved from expensive to fair. The company appears to be fairly valued at this time. Key ratios include a PE Ratio of 21.61, an EV to EBIT of 17.02, and a ROCE of 16.59%.
In comparison to its peers, Galaxy Bearings has a PE Ratio that is significantly lower than Schaeffler India, which stands at 68.74, and Timken India at 55.53, both of which are classified as very expensive. On the other hand, NRB Bearings, which is also rated fair, has a PE Ratio of 19.9, indicating that Galaxy Bearings is competitively positioned within its peer group. Notably, the stock has underperformed against the Sensex over the past year, with a return of -36.47% compared to the Sensex's 7.60%, reinforcing the notion that the stock may be undervalued relative to its potential.