Is Tirupati Forge overvalued or undervalued?

As of 19 August 2025, Tirupati Forge's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 64.04, an EV to EBITDA of 30.79, and a ROCE of 19.63%. In comparison to its peers, Bharat Forge has a PE ratio of 55.37 and an EV to EBITDA of 23.17, while Ramkrishna Forgings shows a PE of 29.52 and an EV to EBITDA of 20.87, suggesting that Tirupati Forge's valuation is on the higher end within its industry.
Despite the recent stock performance showing a decline of 40.62% year-to-date compared to a 5.65% increase in the Sensex, the company's fundamentals indicate that it is fairly valued at its current price of 36.06. The valuation metrics, particularly the high PE ratio, suggest that while the stock may be trading at a premium, it aligns more closely with the fair valuation grade, reflecting a balanced view of its potential in the market.