Is Rane (Madras) overvalued or undervalued?

As of 10 July 2025, Rane (Madras) has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 171.74, an EV to EBITDA of 14.65, and a ROCE of 7.61%. In comparison to its peers, Samvardhana Motherson has a more attractive PE of 28.34 and an EV to EBITDA of 11.25, while Endurance Tech is also fairly valued with a PE of 44.88 and an EV to EBITDA of 23.37.
Despite the fair valuation, Rane (Madras) has shown a strong performance over the long term, with a 3-year return of 169.88%, significantly outperforming the Sensex's 52.69% over the same period. However, the current high PE ratio suggests that the stock may be priced for perfection, indicating limited upside potential in the near term.