Is Smiths & Founder overvalued or undervalued?

Nov 05 2025 08:09 AM IST
share
Share Via
As of November 4, 2025, Smiths & Founder is considered expensive and overvalued due to its high PE ratio of 43.12, low returns on capital, and significant underperformance compared to the Sensex, despite trading at a premium relative to peers like Bharat Forge and CIE Automotive.
As of 4 November 2025, the valuation grade for Smiths & Founder has moved from very expensive to expensive. The company is currently considered overvalued based on its high PE ratio of 43.12, an EV to EBITDA of 24.99, and a PEG ratio of 2.36. In comparison to peers, Bharat Forge has a PE of 61.77 and an EV to EBITDA of 25.67, while CIE Automotive, which is rated attractive, has a significantly lower PE of 20.5 and an EV to EBITDA of 12.17.

The financial metrics indicate that Smiths & Founder is not only trading at a premium compared to its industry peers but also exhibits low returns on capital, with a ROCE of just 0.74% and an ROE of 0.60%. This suggests that the company is struggling to generate adequate returns relative to its valuation. Additionally, the stock has underperformed the Sensex over various time frames, particularly year-to-date, where it has declined by 31.58% compared to the Sensex's gain of 6.81%.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News
Smiths & Founders (India) Stock Hits 52-Week Low at Rs.4.6
Dec 04 2025 11:28 AM IST
share
Share Via
Smiths & Founders (India) Stock Hits 52-Week Low at Rs.4.6
Dec 04 2025 11:27 AM IST
share
Share Via
Why is Smiths & Founder falling/rising?
Dec 04 2025 12:54 AM IST
share
Share Via
Why is Smiths & Founder falling/rising?
Nov 06 2025 11:14 PM IST
share
Share Via
Is Smiths & Founder overvalued or undervalued?
Nov 06 2025 08:09 AM IST
share
Share Via
Are Smiths & Founder latest results good or bad?
Nov 03 2025 07:15 PM IST
share
Share Via