Is Shriram Pistons overvalued or undervalued?

As of 17 July 2025, the valuation grade for Shriram Pistons has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 21.39, a Price to Book Value of 4.53, and an EV to EBITDA of 14.17. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Shriram Pistons stands out with a PE ratio of 21.39, while Rail Vikas has a significantly higher PE of 62.07, and Tube Investments is marked as very expensive with a PE of 83.88. This indicates that while Shriram Pistons is expensive, it is not the most overvalued in its sector. The recent stock performance shows a 1.36% return over the past week, contrasting with a -1.12% return for the Sensex, which may suggest some resilience in the stock despite its high valuation.