Is Active Clothing overvalued or undervalued?

As of 1 October 2025, the valuation grade for Active Clothing has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 16.23, an EV to EBITDA of 9.77, and a PEG Ratio of 0.14, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Active Clothing's valuation stands out favorably against K P R Mill Ltd, which has a significantly higher PE Ratio of 43.71, and Trident, which is valued at a PE of 33.1. This positions Active Clothing as a more attractive investment within the garments and apparel industry. Additionally, the company's stock has outperformed the Sensex over the past year, with a return of 20.72% compared to the Sensex's decline of 3.90%, reinforcing the notion that it is undervalued in the current market context.