Is India Motor Part overvalued or undervalued?

As of 28 October 2025, the valuation grade for India Motor Part has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current financial ratios. Key metrics include a PE ratio of 17.46, a Price to Book Value of 0.54, and an EV to EBITDA ratio of 22.13, which suggest that the stock is trading at a discount relative to its earnings and asset value.
In comparison to its peers, India Motor Part's PE ratio is significantly lower than that of Elitecon International, which is deemed very expensive at 357.73, and MMTC, which has a PE ratio of 141.54 and is classified as risky. Additionally, PTC India, another peer, is also very attractive with a PE of 8.16, reinforcing the notion that India Motor Part is positioned favorably within the auto components and equipment industry. Despite a recent underperformance in stock returns relative to the Sensex over the year, the company's valuation metrics suggest a compelling investment opportunity.