Is Tunwal E-Motors overvalued or undervalued?

As of 24 September 2025, the valuation grade for Tunwal E-Motors has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on key financial metrics. The PE ratio stands at 14.89, while the EV to EBITDA ratio is 16.20, and the Price to Book Value is 1.72. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Tunwal E-Motors' valuation appears less favorable. For instance, Bajaj Auto, which is rated attractive, has a PE ratio of 32.47, and Eicher Motors, categorized as very expensive, has a PE ratio of 39.74. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -38.55%, contrasting sharply with the Sensex's positive return of 5.97% over the same period. This further reinforces the view that Tunwal E-Motors is overvalued in the current market environment.