Is SM Auto Stamping overvalued or undervalued?

As of 17 October 2025, the valuation grade for SM Auto Stamping has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 14.78, an EV to EBITDA of 11.01, and an EV to Sales ratio of 0.65. These ratios suggest that the stock may not justify its current price given its earnings and sales performance.
In comparison to its peers, SM Auto Stamping's valuation appears quite high. For instance, Bosch has a PE ratio of 51.41 and an EV to EBITDA of 46.44, while Samvardhana Motherson shows a PE of 32.35 and an EV to EBITDA of 11.86. The stark contrast in these ratios highlights the overvaluation of SM Auto Stamping relative to its industry peers. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -21.87% compared to the Sensex's 7.44%, further reinforcing the notion that the stock may be overpriced at its current levels.