Is Shankar Lal Ram. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Shankar Lal Ram. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its high valuation ratios, including a PE ratio of 41.62, an EV to EBITDA of 30.13, and a PEG ratio of 1.47. These figures suggest that investors are paying a premium for the stock compared to its earnings growth potential.
In comparison to its peers, Shankar Lal Ram. stands out with a PE ratio significantly higher than that of PTC India, which has a PE of 9.42 and is rated very attractive. Additionally, Lloyds Enterprises is also classified as very expensive but has a staggering PE of 189.84, indicating that Shankar Lal Ram. is not alone in its high valuation but still appears excessively priced relative to more attractive options in the market. The company's recent stock performance has been underwhelming, with a 1-year return of -38.63%, contrasting sharply with the Sensex's modest gain of 1.45% over the same period, reinforcing the notion of overvaluation.