Is Munjal Showa overvalued or undervalued?

As of 29 May 2025, the valuation grade for Munjal Showa has moved from fair to attractive, indicating a more favorable outlook for the company. The verdict is that Munjal Showa is currently undervalued. Key ratios include a PE ratio of 19.10, an EV to EBITDA of 17.35, and a Price to Book Value of 0.83, which suggest that the stock is trading at a reasonable valuation compared to its earnings and book value.
In comparison with peers, Munjal Showa's PE ratio of 19.10 is significantly lower than that of Samvardhana Motherson, which stands at 29.14, and Bosch, which is at 46.21. This highlights that Munjal Showa may offer better value relative to its earnings compared to these competitors. Additionally, while the stock has underperformed the Sensex over the past year with a return of -9.79% compared to the Sensex's 7.62%, its recent performance over one month shows a strong return of 27.78%, reinforcing the attractiveness of the current valuation.