Is Resourceful Auto overvalued or undervalued?

As of 6 November 2025, Resourceful Auto's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 13.59, an EV to EBIT of 13.77, and an EV to EBITDA of 12.96. Comparatively, peers such as Bajaj Auto and Hero MotoCorp exhibit significantly higher valuations, with PE ratios of 32.01 and 21.14, respectively, highlighting Resourceful Auto's relative overvaluation in the market.
The company's financial performance metrics, including a ROCE of 7.42% and a ROE of 7.54%, suggest that while it is generating returns, these figures do not justify its current price level when compared to its peers. Furthermore, the recent stock performance shows a 1-year return of 11.43%, outperforming the Sensex's 3.65%, which may have contributed to the inflated valuation. Overall, Resourceful Auto appears to be overvalued in the current market context.