Is Shankar Lal Ram. overvalued or undervalued?

As of 18 August 2025, the valuation grade for Shankar Lal Ram. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued based on its high valuation metrics. Key ratios include a PE Ratio of 41.50, an EV to EBITDA of 30.05, and a PEG Ratio of 1.47, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Shankar Lal Ram. stands out with a PE Ratio significantly higher than Lloyds Enterprises at 35.13 and PTC India, which is very attractive with a PE of just 8.88. This stark contrast highlights the overvaluation of Shankar Lal Ram. Additionally, while the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -8.22% compared to the Sensex's 4.01%, it has shown remarkable growth over the past five years, with a return of 1328.27%. However, the current valuation metrics suggest that investors may be paying too much for future growth potential.