Is Sharp Chucks and overvalued or undervalued?

As of 10 June 2025, the valuation grade for Sharp Chucks and has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, with a PE ratio of 12.32, an EV to EBITDA of 6.22, and a PEG ratio of 0.57. These ratios suggest that the stock is priced higher than its earnings growth potential would justify.
In comparison to its peers, Sharp Chucks and's PE ratio is significantly lower than that of Bharat Forge, which stands at 61.97, and Sona BLW Precision at 52.16, both of which are categorized as very expensive. Additionally, the company’s return performance has lagged behind the Sensex, with a year-to-date decline of 29.31% compared to the Sensex's gain of 6.17%. This underperformance, combined with its elevated valuation metrics, reinforces the conclusion that Sharp Chucks and is overvalued in the current market environment.