Is Galaxy Bearings overvalued or undervalued?

As of 20 October 2025, Galaxy Bearings has moved from a very attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 20.66, an EV to EBITDA of 14.81, and a ROCE of 16.59%. In comparison to its peers, Schaeffler India is very expensive with a PE of 59.67, while SKF India is very attractive with a PE of 20.88 and an EV to EBITDA of 14.71.
Despite the fair valuation, Galaxy Bearings has underperformed the Sensex in recent periods, particularly with a year-to-date stock return of -19.84% compared to the Sensex's 7.97%. This underperformance may suggest that the market is currently pricing in challenges that could affect future growth, even as the company's fundamental ratios remain competitive within its industry.