Is Acknit Indus. overvalued or undervalued?

As of 29 May 2025, Acknit Indus. has seen its valuation grade change from very attractive to attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 8.39, a Price to Book Value of 0.92, and an EV to EBITDA of 6.58, which suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Acknit Indus. has a PE ratio that is lower than the industry average, which indicates potential for growth relative to competitors. For instance, if we consider similar companies in the garments and apparels sector, their PE ratios tend to be higher, reinforcing the notion that Acknit Indus. is undervalued. Additionally, the company's recent stock performance has lagged behind the Sensex, particularly in the year-to-date and one-year periods, but it has shown significant growth over the longer term, suggesting that it may be a good opportunity for investors looking for value in the market.