Is SM Auto Stamping overvalued or undervalued?

As of 3 September 2025, the valuation grade for SM Auto Stamping has moved from risky to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 14.90, an EV to EBITDA of 11.86, and a ROE of 15.61%. In comparison to peers, Bosch has a significantly higher PE ratio of 54.6, while Samvardhana Motherson stands out with a more attractive valuation at a PE of 29.77.
Despite a recent uptick in stock price, SM Auto Stamping has underperformed on a year-to-date basis, with a decline of 21.21% compared to a 3.11% gain in the Sensex. This further reinforces the view that the stock is overvalued relative to its performance and peer group.