Is Suprajit Engg. overvalued or undervalued?

As of 29 May 2025, the valuation grade for Suprajit Engineering has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued based on its high PE ratio of 66.84, a Price to Book Value of 5.18, and an EV to EBITDA ratio of 21.14. These metrics suggest that the stock price is not justified by its earnings or asset value.
In comparison to peers, Suprajit Engineering's valuation stands out unfavorably; for instance, Samvardhana Motherson has a PE ratio of 29.14 and an EV to EBITDA of 11.53, while Uno Minda shows a PE of 66.72 but a more reasonable EV to EBITDA of 34.55. This highlights that Suprajit is trading at a premium compared to its industry counterparts. Additionally, while Suprajit has demonstrated strong returns over the past five years, outperforming the Sensex, its current valuation does not align with its financial performance, reinforcing the conclusion that it is overvalued.