Is Swaraj Engines overvalued or undervalued?

As of 10 October 2025, Swaraj Engines has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 29.85, while the Price to Book Value is notably high at 12.30, and the EV to EBITDA ratio is 21.02.
In comparison to its peers, Swaraj Engines has a lower PE ratio than Cummins India, which is at 51.48, but higher than Kirloskar Oil, which has a PE of 28.91. Additionally, the PEG ratio for Swaraj Engines is 1.28, indicating that it is relatively more expensive compared to Kirloskar Oil, which has a PEG of 0.00. Despite recent strong stock performance, with a year-to-date return of 43.50% compared to the Sensex's 5.58%, the current valuation suggests that investors may be paying a premium for future growth that may not materialize.