Is Servotech Renew overvalued or undervalued?

As of 17 October 2025, the valuation grade for Servotech Renew has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial ratios. The PE ratio stands at 83.33, the Price to Book Value is 11.80, and the EV to EBITDA ratio is 48.94, all of which are significantly higher than industry norms.
In comparison to its peers, Servotech Renew's PE ratio is notably higher than that of Apar Industries, which has a PE of 39.48 and is rated as fair. Additionally, Siemens Energy has a PE of 113.01 but is categorized as very expensive, further highlighting Servotech's relative overvaluation. The company's recent stock performance has been underwhelming, with a year-to-date return of -25.83%, contrasting sharply with the Sensex's positive return of 8.73% in the same period. This reinforces the conclusion that Servotech Renew is currently overvalued.