Is Rane (Madras) overvalued or undervalued?

Aug 19 2025 08:02 AM IST
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As of August 18, 2025, Rane (Madras) is considered undervalued despite a high PE ratio of 76.92, showing potential for recovery and growth after a -14.72% return over the past year, while outperforming the Sensex in the last three and five years.
As of 18 August 2025, Rane (Madras) has moved from a fair to attractive valuation grade. The company is currently considered undervalued despite its high PE ratio of 76.92, a Price to Book Value of 3.46, and an EV to EBITDA of 12.14. In comparison to peers, Bosch is deemed expensive with a PE of 52.28, while Samvardhana Motherson is attractive with a significantly lower PE of 29.09, indicating that Rane (Madras) may present a more favorable investment opportunity relative to its peers.

Although Rane (Madras) has shown a decline in stock performance over the past year with a return of -14.72%, it has outperformed the Sensex over the last three and five years, with returns of 111.08% and 288.26%, respectively. This long-term performance suggests potential for recovery and growth, reinforcing the view that the company is currently undervalued in the market.
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