Is Shankar Lal Ram. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Shankar Lal Ram. has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 37.56, while the EV to EBITDA ratio is at 27.28, both of which are significantly higher than peers such as PTC India, which has a PE ratio of 7.9 and an EV to EBITDA of 4.18, indicating a more attractive valuation.
In comparison to its peers, Shankar Lal Ram. shows a PEG ratio of 1.33, which is relatively high, suggesting that the growth prospects may not justify the current price. Additionally, the company's return on equity (ROE) is at 11.08%, which, while respectable, does not compensate for the high valuation multiples. Despite a recent one-week stock return of 3.89% compared to a -0.86% return for the Sensex, the overall trend indicates that Shankar Lal Ram. remains overvalued in the current market context.