Is Sarla Performanc overvalued or undervalued?

As of 6 November 2025, the valuation grade for Sarla Performance has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently assessed as undervalued, with a PE ratio of 11.19, an EV to EBITDA of 11.05, and a PEG ratio of 0.19, which suggests that the stock is trading at a discount relative to its growth potential.
When compared to peers, Sarla Performance stands out favorably against K P R Mill Ltd, which is classified as very expensive with a PE ratio of 43.81, and Trident, which is rated fair with a PE ratio of 32.8. This peer comparison reinforces the notion that Sarla Performance is undervalued within its industry. Additionally, while the company's recent stock performance has lagged behind the Sensex over the past year, it has shown remarkable growth over the longer term, with a 5-year return of 437.24%, further supporting its attractive valuation.