Is Shivam Autotech overvalued or undervalued?

As of 12 June 2025, Shivam Autotech's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its current financial metrics, particularly with a PE ratio of -8.39, a Price to Book Value of 12.81, and an EV to EBIT of 65.97. These figures suggest significant concerns regarding profitability and capital efficiency.
In comparison to its peers, Shivam Autotech's valuation stands out unfavorably; for instance, Samvardhan Motherson has a PE ratio of 28.68 and an EV to EBITDA of 11.37, while Endurance Tech maintains a PE of 41.42 and an EV to EBITDA of 21.53, both indicating stronger market positions. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -27.65% compared to the Sensex's 4.55%, further reinforcing the notion that Shivam Autotech is currently overvalued.