Is Pavna Industries overvalued or undervalued?

As of 8 August 2025, the valuation grade for Pavna Industries has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics, with a PE ratio of 68.56, an EV to EBITDA ratio of 16.14, and a ROCE of 8.78%. In comparison to peers, Samvardhana Motherson has a significantly lower PE ratio of 25.38 and an EV to EBITDA of 10.18, while Bosch is considered expensive with a PE of 51.03 and an EV to EBITDA of 46.10.
Despite the attractive valuation grade, Pavna Industries has underperformed relative to the Sensex, with a year-to-date return of -26.54% compared to the Sensex's positive return of 2.20%. This underperformance may suggest market skepticism regarding the company's growth prospects, despite its attractive valuation metrics. Overall, the combination of its grade change and comparative ratios supports the conclusion that Pavna Industries is currently undervalued.