Is Rajratan Global overvalued or undervalued?

As of 22 July 2025, Rajratan Global's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 37.27, a Price to Book Value of 3.81, and an EV to EBITDA of 18.23. In comparison to peers, Bosch has a significantly higher PE ratio of 55.33, while Samvardhana Motherson stands out with a more attractive PE of 27, highlighting the relative expense of Rajratan Global in its sector.
Despite a recent uptick in stock price, Rajratan Global has underperformed against the Sensex over the past year, with a decline of 26.45% compared to the index's modest gain of 2.09%. This performance, coupled with its elevated valuation ratios, suggests that investors may be paying a premium for the stock that is not justified by its current financial metrics.