Is Sharika Enterpr. overvalued or undervalued?

As of 23 September 2025, the valuation grade for Sharika Enterprises has moved from fair to expensive, indicating a shift in perception regarding its valuation. The company is currently considered overvalued, with a PE ratio of 70.36, an EV to EBITDA ratio of 56.78, and a Price to Book Value of 3.20. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Sharika Enterprises' PE ratio is significantly higher than that of Rail Vikas, which stands at 62.36, and is also above the industry average. Other peers like Tube Investments and AIA Engineering are categorized as very expensive, with PE ratios of 98.51 and 26.05, respectively. Despite this, Sharika's negative ROE of -2.50% and ROCE of -0.28% raise concerns about its profitability and operational efficiency. Notably, the stock has underperformed compared to the Sensex over the past year, with a return of -24.7% versus -3.33% for the index, further reinforcing the view that the stock is overvalued.