Is Sharda Motor overvalued or undervalued?

As of 29 August 2025, Sharda Motor's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, supported by a PE ratio of 18.22, an EV to EBITDA of 12.50, and a robust ROCE of 162.59%. In comparison to its peers, Sharda Motor's valuation metrics stand out; for instance, Bosch is deemed expensive with a PE ratio of 53.09, while Samvardhana Motherson, also attractive, has a higher PE of 28.68.
The company's strong performance is further highlighted by its impressive ROE of 29.66%, showcasing effective management of equity. In the context of recent stock performance, Sharda Motor has outperformed the Sensex over a three-year period, returning 152.87% compared to the Sensex's 37.67%. This reinforces the narrative that Sharda Motor is positioned favorably within the auto components sector, making it an attractive investment opportunity.