Is Vishal Bearings overvalued or undervalued?

As of 16 June 2025, the valuation grade for Vishal Bearings has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears undervalued based on its current metrics, particularly with a PE Ratio of -42.14, an EV to EBITDA of 18.22, and a Price to Book Value of 2.58. These ratios suggest that despite the negative earnings reflected in the PE ratio, the company's underlying value may not be fully recognized in the market.
In comparison to its peers, Vishal Bearings stands out with a more attractive valuation against companies like Schaeffler India, which has a PE of 64.68, and Timken India, with a PE of 54.56, both categorized as very expensive. Additionally, NRB Bearings, another attractive peer, has a PE of 18.86, further emphasizing Vishal Bearings' relative undervaluation. While the stock has underperformed the Sensex over the past year with a return of -37.25% compared to the Sensex's 6.24%, the recent grade change suggests potential for recovery and growth in value.