Is Shankar Lal Ram. overvalued or undervalued?

As of 6 November 2025, the valuation grade for Shankar Lal Ram. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE Ratio of 36.31, an EV to EBIT of 26.53, and an EV to EBITDA of 26.41. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Shankar Lal Ram. stands out with a notably high PE Ratio of 36.31, while Elitecon International, another very expensive peer, has a staggering PE of 392.28, which is an outlier. On the other hand, PTC India, classified as very attractive, has a significantly lower PE of 7.83, highlighting the disparity in valuation within the industry. The recent stock performance shows a year-to-date decline of 19.7%, contrasting with the Sensex's gain of 6.62%, further reinforcing the notion that Shankar Lal Ram. is overvalued in the current market context.