Is Igarashi Motors overvalued or undervalued?

As of 26 September 2025, Igarashi Motors has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 85.49, an EV to EBITDA of 18.95, and a Price to Book Value of 3.40. In comparison to its peers, Bosch is considered expensive with a PE of 50.76, while Samvardhana Motherson is attractive with a PE of 32.65, indicating that Igarashi Motors is positioned within a competitive valuation landscape. Despite its fair valuation, Igarashi Motors has experienced a significant decline in stock performance, with a year-to-date return of -29.74%, contrasting with a Sensex return of 2.93%. This underperformance over the past year, coupled with a low ROE of 3.98% and a ROCE of 7.26%, suggests that while the stock is fairly valued, it may face challenges in delivering robust returns compared to its peers.