Is Tirupati Forge overvalued or undervalued?

As of 10 October 2025, Tirupati Forge's valuation grade has moved from expensive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued, with a PE ratio of 74.45, an EV to EBITDA of 33.78, and a ROCE of 15.88%. In comparison, Bharat Forge, another peer in the industry, has a PE ratio of 56.9 and an EV to EBITDA of 23.77, while Ramkrishna Forgings shows a PE of 27.94 and an EV to EBITDA of 19.93, highlighting that Tirupati Forge's valuation is on the higher end among its peers.
Despite the fair valuation, Tirupati Forge has experienced a significant decline in its year-to-date stock performance, down 31.55%, contrasting with the Sensex's gain of 6.94% in the same period. This underperformance may suggest that the market is still cautious about the company's growth prospects, despite its current valuation status.