Is Talbros Engg. overvalued or undervalued?

As of 1 July 2025, the valuation grade for Talbros Engineering has moved from attractive to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued, with a price-to-earnings (PE) ratio of 14.60, a price-to-book value of 1.91, and an EV to EBITDA ratio of 8.56. These figures suggest that Talbros is trading at a favorable valuation compared to its peers.
In comparison to its industry peers, Talbros stands out with a lower PE ratio than Samvardhana Motherson, which has a PE of 28.15, and significantly lower than Bosch, which is considered expensive at a PE of 47.44. The PEG ratio of Talbros at 1.15 further supports its undervaluation relative to the market. Despite recent underperformance against the Sensex over the past year, where Talbros returned -7.81% compared to the Sensex's 5.31%, its long-term performance over five years shows a remarkable return of 647.90%, reinforcing its potential as a strong investment opportunity.