Is Galaxy Bearings overvalued or undervalued?

As of 27 October 2025, Galaxy Bearings has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 40.13, an EV to EBITDA of 22.15, and a ROCE of 16.59%. In comparison to its peers, Schaeffler India has a significantly higher PE Ratio of 60.74, while SKF India, which is classified as very attractive, has a much lower PE Ratio of 20.48.
The recent performance of Galaxy Bearings has been poor, with a year-to-date return of -26.77%, contrasting sharply with the Sensex's gain of 8.50% over the same period. This underperformance, coupled with its high valuation ratios, reinforces the conclusion that the stock is overvalued in the current market environment.