Is Sh. Rama Multi. overvalued or undervalued?

As of 13 November 2025, the valuation grade for Sh. Rama Multi. has moved from expensive to very expensive. This indicates a significant shift in perception regarding its market valuation. The company is currently considered overvalued, especially in comparison to its peers. Key ratios include a PE ratio of 13.38, an EV to EBITDA of 20.55, and a PEG ratio of 0.04, which suggests that despite the low PEG, the overall valuation remains high relative to earnings growth expectations.
In the peer comparison, Garware Hi Tech is categorized as expensive with a PE ratio of 25.61 and an EV to EBITDA of 17.85, while AGI Greenpac is rated as attractive with a PE of 14.5 and an EV to EBITDA of 9.02. These comparisons highlight that Sh. Rama Multi. is trading at a higher valuation than some of its peers, suggesting that the current price may not be justified. Notably, the company's stock has outperformed the Sensex significantly over the past year, with a return of 60.78% compared to the Sensex's 8.74%, but this performance does not mitigate the concerns regarding its current overvaluation.