Is Vishal Bearings overvalued or undervalued?

As of 17 September 2025, the valuation grade for Vishal Bearings has moved from fair to attractive, indicating a potential shift in its market perception. The company appears to be undervalued, especially when considering its current PE ratio of -32.33, an EV to EBITDA of 18.78, and a ROCE of 5.72%. These figures suggest that the market may not be fully recognizing the company's underlying value.
In comparison to its peers, Vishal Bearings stands out with a significantly lower PE ratio than Schaeffler India at 63.72 and SKF India at 45.21, both of which are classified as very expensive. Additionally, while NRB Bearings and Galaxy Bearings are rated fair, their PE ratios of 19.94 and 21.97 respectively highlight Vishal's relative undervaluation. Despite recent underperformance against the Sensex, particularly with a year-to-date decline of 36.23% compared to the Sensex's gain of 5.83%, the attractive valuation suggests that there may be opportunities for recovery and growth ahead.