Is Shakti Pumps overvalued or undervalued?

As of 12 August 2025, the valuation grade for Shakti Pumps has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 25.07, an EV to EBITDA of 16.93, and a PEG Ratio of 0.32, which suggests that while growth expectations may be high, the current price does not justify the valuation compared to earnings growth.
In comparison to its peers, Shakti Pumps has a lower PE Ratio than Elgi Equipments at 47.06 and KSB at 53.42, both of which are also classified as very expensive. However, the overall valuation of Shakti Pumps remains elevated within its industry. Notably, despite a recent stock return of 7.29% over the past year, which outperformed the Sensex's 0.74%, the long-term performance shows a substantial increase of 3271.12% over the last decade, further complicating the valuation narrative.