Is Igarashi Motors overvalued or undervalued?

Jul 02 2025 08:01 AM IST
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As of July 1, 2025, Igarashi Motors is considered overvalued with a PE ratio of 66.86 and lower profitability metrics, contrasting sharply with its peers and a year-to-date return of -28.29% compared to the Sensex's 7.11% gain.
As of 1 July 2025, Igarashi Motors has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 66.86, a Price to Book Value of 3.51, and an EV to EBITDA ratio of 18.36. Compared to its peers, Igarashi Motors stands out with a significantly higher PE ratio than Samvardhana Motherson, which has a PE of 28.15, and Bosch, at 47.44, indicating a premium that may not be justified by its financial performance.

In terms of profitability, Igarashi Motors has a ROCE of 7.10% and an ROE of 5.26%, which are relatively low compared to the high valuation metrics. The company's recent stock performance has outpaced the Sensex over the past week and month, but its year-to-date return of -28.29% starkly contrasts with the Sensex's 7.11% gain, further reinforcing the notion that the stock is overvalued in the current market environment.
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