Is Vishal Bearings overvalued or undervalued?

As of 14 November 2025, the valuation grade for Vishal Bearings has moved from fair to expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of -49.20, an EV to EBIT of 59.06, and an EV to EBITDA of 16.26. These ratios suggest that the company is struggling to generate profits, as evidenced by its negative ROE of -4.80% and a low ROCE of 2.10%.
In comparison to its peers, Vishal Bearings stands out unfavorably; for instance, Schaeffler India has a PE ratio of 59.88 and Timken India at 50.74, both categorized as very expensive, while SKF India and NRB Bearings are considered very attractive with PE ratios of 19.21 and 19.49, respectively. The recent performance of Vishal Bearings has also been disappointing, with a year-to-date return of -37.53%, significantly underperforming the Sensex's gain of 8.22% during the same period. This combination of poor financial ratios and negative market performance reinforces the conclusion that Vishal Bearings is overvalued.