Is Talbros Engg. overvalued or undervalued?

As of 1 October 2025, the valuation grade for Talbros Engineering has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 14.86, an EV to EBITDA of 8.59, and a PEG ratio of 0.88, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Talbros stands out favorably. For instance, Bosch is deemed expensive with a PE ratio of 50.88, while Samvardhana Motherson International, classified as attractive, has a PE of 32.77. These comparisons highlight Talbros' competitive positioning within the auto components industry. Despite a recent decline in stock price, Talbros has shown strong long-term performance, with a remarkable 628.40% return over the past five years, significantly outpacing the Sensex's 109.28% return in the same period.