Is SM Auto Stamping overvalued or undervalued?

As of 29 August 2025, the valuation grade for SM Auto Stamping has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 14.19, while the EV to EBITDA ratio is 11.35, and the Price to Book Value is 2.21. These figures suggest that the company is trading at a premium compared to its earnings and book value.
In comparison to its peers, SM Auto Stamping's PE ratio is significantly lower than that of Bosch, which has a PE of 53.09, and Uno Minda, with a PE of 71.64. However, it is also lower than Samvardhana Motherson, which has a PE of 28.68, indicating that while SM Auto Stamping is less expensive than some peers, it still does not present a compelling value proposition. The recent stock performance shows a decline of 46.48% over the past year, contrasting with a modest drop in the Sensex, which fell by only 2.83%. This underperformance further supports the view that SM Auto Stamping is overvalued.