Is Sarla Performanc overvalued or undervalued?

As of 16 October 2025, the valuation grade for Sarla Performance has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 11.20, a Price to Book Value of 1.56, and an EV to EBITDA of 11.05, which are favorable compared to its peers.
In the peer comparison, Sarla Performance's PE Ratio of 11.20 stands in stark contrast to K P R Mill Ltd, which is very expensive at 43.34, and Trident, which is fairly valued at 32.81. Additionally, Sarla's PEG Ratio of 0.19 suggests strong growth potential relative to its price, further supporting the undervaluation thesis. Despite recent stock underperformance compared to the Sensex, particularly in the year-to-date period, the long-term return of 417.73% over five years highlights the company's strong growth trajectory.