Is TVS Srichakra overvalued or undervalued?

As of 6 October 2025, the valuation grade for TVS Srichakra has moved from attractive to fair. The company is currently fairly valued based on its financial metrics, with a PE ratio of 113.20, an EV to EBITDA of 17.06, and a dividend yield of 0.45%. In comparison to peers, MRF has a PE ratio of 35.93 and an EV to EBITDA of 16.17, while Apollo Tyres shows a more attractive valuation with a PE of 28.81 and an EV to EBITDA of 9.55. Despite the recent grade change, TVS Srichakra has demonstrated strong performance relative to the Sensex, particularly over the past week and month, with stock returns of 16.52% and 27.97%, respectively. However, the high PE ratio suggests that the market may be pricing in significant growth expectations, which could indicate that the stock is approaching overvaluation in the context of its peers.