Is Swaraj Engines overvalued or undervalued?

As of 27 June 2025, Swaraj Engines has moved from expensive to fair in its valuation grade. The company is currently fairly valued, with a PE ratio of 30.12, an EV to EBITDA ratio of 21.14, and a PEG ratio of 1.48. Notably, its ROCE stands at an impressive 91.46%, indicating strong operational efficiency.
In comparison to its peers, Cummins India is classified as very expensive with a PE ratio of 46.52, while Kirloskar Oil is rated as attractive with a PE ratio of 27.13. The valuation metrics suggest that Swaraj Engines is positioned competitively within its industry of compressors, pumps, and diesel engines. Additionally, the company's year-to-date return of 39.08% significantly outpaces the Sensex's return of 7.58%, reinforcing the notion of its fair valuation.