Is Wheels India overvalued or undervalued?

As of 30 May 2025, Wheels India has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 16.44, an EV to EBITDA of 7.29, and a PEG ratio of 0.21, all of which indicate a favorable valuation relative to its peers.
In comparison to its industry peers, Wheels India stands out with a significantly lower PE ratio than Samvardhana Motherson, which has a PE of 29.14, and a much lower EV to EBITDA than Bosch at 39.75. This suggests that Wheels India is positioned well within the market, offering a compelling investment opportunity. Additionally, while the stock has returned 15.95% over the past month, outperforming the Sensex's 3.91%, it still reflects a strong potential for growth in the long term.