Is Shilp Gravures overvalued or undervalued?

As of 14 November 2025, the valuation grade for Shilp Gravures has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a price-to-earnings (PE) ratio of 50.63, an EV to EBITDA ratio of 11.93, and a price to book value of 1.39. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Shilp Gravures' PE ratio is lower than Thermax's 60.32 and BEML Ltd's 56.6, both of which are also classified as very expensive. However, the company's relatively low return on equity (ROE) of 2.74% and return on capital employed (ROCE) of 5.50% raise concerns about its ability to generate sufficient returns relative to its high valuation. Notably, Shilp Gravures has underperformed the Sensex in the year-to-date period, with a return of -31.27% compared to the Sensex's 8.22%, reinforcing the notion of overvaluation.