Is Supertech EV overvalued or undervalued?

As of 29 August 2025, the valuation grade for Supertech EV has moved from does not qualify to very expensive. The company is currently overvalued based on its financial ratios, including a PE ratio of 10.29, an EV to EBIT of 7.58, and an EV to EBITDA of 7.20. In comparison to peers, Supertech EV's valuation metrics are significantly lower than those of Bajaj Auto, which has a PE ratio of 31.74, and Eicher Motors, with a PE ratio of 34.48, indicating that Supertech EV is not aligned with the higher valuations seen in the industry.
Despite showing strong returns on capital with a ROCE of 61.20% and ROE of 64.26%, the overall valuation suggests that the market may be pricing in excessive expectations for future growth. Recent stock performance has lagged behind the Sensex, with a 1-week return of -9.56% compared to the Sensex's -1.84%, reinforcing the notion that Supertech EV is overvalued in the current market environment.