Is SM Auto Stamping overvalued or undervalued?

As of 8 August 2025, the valuation grade for SM Auto Stamping has moved from expensive to risky, indicating a shift in perception regarding its valuation. The company is currently assessed as undervalued. Key ratios include a PE ratio of 14.68, an EV to EBITDA of 11.70, and a ROE of 15.61%.
In comparison to its peers, SM Auto Stamping's PE ratio is significantly lower than Bosch's 51.03 and Samvardhana Motherson's 25.38, suggesting that it is trading at a discount relative to these competitors. Additionally, the company's EV to Sales ratio of 0.69 further supports the undervaluation narrative, especially when compared to the higher valuations of its peers. Notably, SM Auto Stamping has underperformed the Sensex over the past year, with a return of -45.86% compared to the Sensex's 1.23%, reinforcing the notion that the stock may be undervalued in the current market context.