Is Resourceful Auto overvalued or undervalued?

As of 24 October 2025, Resourceful Auto's valuation grade has moved from risky to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 13.59, an EV to EBIT of 13.77, and a Price to Book Value of 1.03, which suggest that the stock is priced higher relative to its earnings and book value compared to its peers.
In comparison to notable competitors, Bajaj Auto has a significantly higher PE Ratio of 33.37 and EV to EBITDA of 23.33, indicating a premium valuation in the market. Eicher Motors, classified as very expensive, has a PE Ratio of 38.77, further highlighting Resourceful Auto's relative overvaluation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -5.66% compared to the Sensex's 0.31%, reinforcing the notion of overvaluation in the current market context.