Is Resourceful Auto overvalued or undervalued?

As of 28 October 2025, Resourceful Auto's valuation grade has moved from expensive to fair. The company is currently fairly valued, with a price-to-earnings (PE) ratio of 12.72, a price-to-book value of 0.96, and an EV to EBITDA ratio of 12.22. These ratios indicate that the company is positioned competitively within its sector, especially when compared to peers such as Bajaj Auto, which has a PE ratio of 33.28, and Hero MotoCorp, with a PE ratio of 22.26.
While Resourceful Auto's financial metrics suggest it is fairly valued, it has underperformed in the short term, with a year-to-date return of -5.01% compared to the Sensex's 8.30%. The company's return on capital employed (ROCE) and return on equity (ROE) stand at 7.42% and 7.54%, respectively, which are reasonable but indicate room for improvement relative to industry leaders. Overall, Resourceful Auto appears to be a stable investment option within the automobile sector, reflecting a fair valuation amidst a competitive landscape.