Is Resourceful Auto overvalued or undervalued?

As of 10 October 2025, Resourceful Auto's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial ratios. It has a PE ratio of 14.41, an EV to EBIT of 14.50, and an EV to EBITDA of 13.64, which are relatively low compared to its peers. For instance, Bajaj Auto, categorized as attractive, has a PE of 32.93, while TVS Motor Co., also expensive, boasts a PE of 69.95.
In comparison to its peers, Resourceful Auto's valuation metrics suggest it is trading at a premium without the corresponding growth potential. The company's ROCE stands at 7.42% and ROE at 7.54%, which are not compelling when juxtaposed with the higher returns of competitors like Bajaj Auto and Hero MotoCorp. Additionally, Resourceful Auto has outperformed the Sensex with a 1-year stock return of 12.95% compared to the Sensex's 1.09%, yet this does not mitigate the overall assessment of being overvalued in the current market context.