Is Sharda Motor overvalued or undervalued?

As of 26 September 2025, Sharda Motor's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a PE Ratio of 18.75, an EV to EBITDA of 12.93, and a ROE of 29.66%. In comparison to its peers, Sharda Motor's PE Ratio is significantly lower than Bosch, which is considered expensive at 50.76, and also lower than Motherson Wiring at 51.72. Other attractive peers like Samvardhana Motherson have a higher PE of 32.65, while TVS Holdings stands at 20.24. Notably, Sharda Motor has outperformed the Sensex year-to-date with a return of 12.99% compared to the Sensex's 2.93%, reinforcing its attractive valuation.