Is Tunwal E-Motors overvalued or undervalued?

As of 26 August 2025, the valuation grade for Tunwal E-Motors has moved from very expensive to fair, indicating a significant improvement in its perceived value. The company is currently fairly valued, with a PE ratio of 14.45, an EV to EBIT ratio of 16.77, and an ROE of 57.77%. These metrics suggest that Tunwal E-Motors is positioned competitively within its industry.
In comparison to its peers, Tunwal E-Motors has a lower PE ratio than Bajaj Auto (32) and Eicher Motors (34.87), both of which are considered expensive. Additionally, its EV to EBITDA ratio of 15.28 is more favorable than Bajaj Auto's 21.51, further supporting the conclusion of fair valuation. While the stock has underperformed compared to the Sensex year-to-date, with a return of -40.36% against the Sensex's 4.51%, the current valuation metrics indicate that the company presents a more attractive investment opportunity relative to its peers.