Is Vishal Bearings overvalued or undervalued?

As of 18 August 2025, Vishal Bearings has moved from a fair to an attractive valuation grade. The company appears to be undervalued, particularly when considering its significant negative PE ratio of -35.12, a price-to-book value of 2.45, and an EV to EBITDA ratio of 19.07. These figures suggest that the market may not be fully recognizing the company's potential, especially in comparison to its peers.
In the peer comparison, Vishal Bearings stands out with its attractive valuation despite the negative PE ratio, while competitors like Schaeffler India and SKF India are deemed very expensive with PE ratios of 60.92 and 42.21, respectively. Additionally, the PEG ratio for Vishal Bearings is 0.00, indicating no growth expectations priced in, which contrasts sharply with its peers. The company's recent stock performance has been underwhelming, with a year-to-date return of -30.73%, compared to a 4.01% gain in the Sensex, but its long-term performance over five years shows a substantial return of 222.85%.