Is Ahm. Steelcraft overvalued or undervalued?

As of 7 July 2025, Ahm. Steelcraft's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, with a PE ratio of 34.52, an EV to EBITDA of 30.22, and a ROE of 46.34%. These ratios suggest that while the company has strong returns on equity, its valuation multiples are relatively high compared to the industry.
In comparison to its peers, Ahm. Steelcraft's PE ratio is significantly lower than that of Elitecon International and Lloyds Enterprises, which have PE ratios of 185.1 and 199.85, respectively. However, it is worth noting that the company is still positioned in a competitive landscape where other firms like PTC India are considered very attractive with a PE of 9.36. Recent stock performance shows that while Ahm. Steelcraft has outperformed the Sensex over the long term, it has underperformed in the short term, with a year-to-date return of -7.90% compared to the Sensex's 6.79%.