Is Shriram Pistons overvalued or undervalued?

As of 7 November 2025, the valuation grade for Shriram Pistons has moved from expensive to fair. This indicates a shift in perception regarding its market value, suggesting that it is currently fairly valued. The company exhibits a PE ratio of 21.15, an EV to EBIT of 4.64, and an EV to EBITDA of 3.91, which are competitive within its industry.
In comparison to its peers, Shriram Pistons stands out as fairly valued against Rail Vikas, which is considered expensive with a PE ratio of 55.79, and Tube Investments, which is also very expensive with a PE ratio of 91.93. While Shriram Pistons has a lower PEG ratio of 1.36, indicating potential growth relative to its price, its ROCE of 3.66% and ROE of 2.05% suggest room for improvement in returns. Notably, the stock has underperformed the Sensex over the past month, which may reinforce the view that it is currently fairly valued.