Is Shakti Pumps overvalued or undervalued?

As of 25 September 2025, the valuation grade for Shakti Pumps has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE Ratio of 24.90, an EV to EBITDA of 16.82, and a PEG Ratio of 0.31, which suggests that while the growth potential is high relative to its price, the overall valuation remains elevated compared to its peers.
In comparison to its industry peers, Shakti Pumps' PE Ratio is significantly lower than that of Kirl. Brothers at 36.91 and Elgi Equipments at 43.31, both of which are classified as expensive and very expensive, respectively. Despite a strong ROCE of 50.26% and ROE of 35.17%, the stock's recent performance shows a year-to-date decline of 21.77%, contrasting with a 3.87% gain in the Sensex, further indicating potential overvaluation concerns.