Is Sarla Performanc overvalued or undervalued?

As of 23 October 2025, the valuation grade for Sarla Performanc has moved from very attractive to attractive. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE ratio of 11.80, an EV to EBITDA of 11.56, and a PEG ratio of 0.20, which indicates strong growth potential relative to its price.
In comparison to its peers, Sarla Performanc's PE ratio is significantly lower than K P R Mill Ltd, which is at 44.73, and Trident, at 33.57, both of which are considered expensive. Additionally, Vardhman Textile, which is rated fair, has a PE ratio of 15.03, further highlighting Sarla Performanc's relative undervaluation. Notably, Sarla Performanc has outperformed the Sensex over the long term, with a 5-year return of 464.46% compared to the Sensex's 107.83%.