Is Shankar Lal Ram. overvalued or undervalued?

As of 21 August 2025, the valuation grade for Shankar Lal Ram. has moved from expensive to very expensive. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE ratio of 40.56, an EV to EBITDA of 29.39, and a Price to Book Value of 4.50, all of which indicate a high valuation relative to earnings and assets.
In comparison to peers, Shankar Lal Ram. has a PE ratio that is slightly lower than Lloyds Enterprises at 40.66 but significantly higher than PTC India, which is very attractive with a PE of 9.11. The company’s recent stock performance has been poor, with a year-to-date return of -10.29%, contrasting sharply with the Sensex's gain of 4.94% during the same period, reinforcing the notion that Shankar Lal Ram. is overvalued in the current market environment.