Is Shriram Pistons overvalued or undervalued?

As of 10 November 2025, Shriram Pistons has moved from a fair to an expensive valuation grade. The company appears to be overvalued at its current price of 2,655.90, especially when considering its PE ratio of 21.66, EV to EBIT of 5.06, and a low ROE of 2.05%. In comparison to its peers, Rail Vikas has a significantly higher PE ratio of 55.27, while Craftsman Auto is at 61.83, indicating that Shriram Pistons is not only more expensive but also less attractive in terms of profitability metrics.
The valuation metrics suggest that Shriram Pistons is not justified at its current price level, particularly given its low ROCE of 3.66% and a PEG ratio of 1.39. While the stock has shown a slight decline of 0.64% over the past week, the Sensex has only dipped by 0.53%, indicating that the company is underperforming relative to the broader market. Overall, Shriram Pistons is positioned as overvalued in the current market landscape.