Is TVS Srichakra overvalued or undervalued?

As of 18 November 2025, the valuation grade for TVS Srichakra has moved from fair to expensive. The company is currently considered overvalued based on its high valuation multiples, including a PE ratio of 130.14, an EV to EBITDA ratio of 19.35, and a Price to Book Value of 3.11. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, TVS Srichakra's PE ratio significantly exceeds that of MRF at 35.67 and Apollo Tyres at 29.79, both of which are also classified as expensive but remain substantially lower than TVS Srichakra. Additionally, the company's return on equity (ROE) stands at a mere 2.39%, which raises concerns about its profitability relative to its high valuation. Despite recent strong stock performance, with a year-to-date return of 35.00% compared to the Sensex's 8.36%, the overall valuation metrics indicate that TVS Srichakra is overvalued in the current market context.