Is OSEL Devices overvalued or undervalued?

As of 5 September 2025, the valuation grade for OSEL Devices has moved from very expensive to risky, indicating a shift in perception regarding its market valuation. The company is currently deemed overvalued, with a PE ratio of 47.36, a Price to Book Value of 37.47, and an EV to EBITDA ratio of 29.05, all significantly higher than industry norms.
In comparison to its peers, OSEL Devices' PE ratio is notably lower than that of Kaynes Tech at 144.57 and Honeywell Auto at 61.23, yet it remains elevated relative to Genus Power, which has a PE of 24.99. The high ROCE of 70.19% and ROE of 79.12% suggest strong profitability, but the overall valuation metrics imply that the stock may not be justified at its current price of 588.70, especially considering its recent performance against the Sensex, where it has outperformed with a year-to-date return of 93.72% compared to the Sensex's 4.64%.