Is Vishal Bearings overvalued or undervalued?

As of 14 November 2025, Vishal Bearings has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of -49.20, a Price to Book Value of 2.36, and an EV to EBITDA of 16.26. These ratios indicate significant financial distress, particularly highlighted by the negative ROE of -4.80% and a low ROCE of 2.10%, suggesting inefficiencies in generating returns on equity and capital.
In comparison to its peers, Vishal Bearings stands out unfavorably; for instance, Schaeffler India has a PE ratio of 59.88 and an EV to EBITDA of 37.86, while SKF India presents a more attractive valuation with a PE of 19.21 and an EV to EBITDA of 13.46. The recent performance of Vishal Bearings has also lagged behind the Sensex, with a year-to-date return of -37.53% compared to the Sensex's 8.22%. This combination of poor financial ratios and underperformance relative to peers reinforces the conclusion that Vishal Bearings is currently overvalued.