Is Standard Battery overvalued or undervalued?

As of 25 April 2023, the valuation grade for Standard Battery has moved from does not qualify to risky. The company is currently assessed as overvalued, given its high PE ratio of 26.71 and a PEG ratio of only 0.02, indicating a significant disparity between its price and earnings growth potential. Additionally, the company's ROE stands at an impressive 73.71%, but this is overshadowed by a negative ROCE of -40.91%, suggesting inefficiency in generating returns from capital employed.
In comparison to peers, Standard Battery's valuation appears unfavorable. For instance, MMTC has a PE ratio of 119.39, while PTC India, which is rated very attractive, has a significantly lower PE of 9.02. The EV to EBITDA ratio for Standard Battery is notably negative at -34.03, which raises concerns about its operational profitability compared to its peers. While the stock has shown strong long-term performance, it has underperformed against the Sensex in the past year, further supporting the view that it is currently overvalued.