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. The key ratios include a PE ratio of 14.78, an EV to EBITDA of 11.01, and a ROE of 13.50%.
In comparison to its peers, SM Auto Stamping's PE ratio is notably lower than that of Bosch, which stands at 51.41, and Samvardhana Motherson, which has a PE of 32.35. This suggests that while SM Auto Stamping may appear less expensive on a standalone basis, its valuation relative to the industry remains high. Additionally, the company has underperformed against the Sensex, with a year-to-date return of -21.87% compared to the Sensex's 7.44%, reinforcing the view that it is overvalued in the current market context.