Is Shankar Lal Ram. overvalued or undervalued?

As of 26 June 2025, the valuation grade for Shankar Lal Ram. moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a PE ratio of 45.24, an EV to EBIT of 32.50, and an EV to EBITDA of 32.28. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flows.
In comparison to peers, Shankar Lal Ram. stands out with its high PE ratio compared to MMTC, which has a PE of 115.27, and Lloyds Enterprises, which is at 179.3, both of which are also classified as very expensive. Additionally, while PTC India is considered very attractive with a PE of 9.16, it highlights the stark contrast in valuation within the industry. Despite recent stock performance showing a 17.66% return over the past week compared to a 2.94% return for the Sensex, the long-term outlook remains concerning with a 1-year return of -25.14% against the Sensex's 6.46%.