Is Angel Fibers overvalued or undervalued?

As of 28 August 2025, the valuation grade for Angel Fibers has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued based on its key financial ratios, including a PE ratio of 28.80, an EV to EBITDA of 12.74, and a ROE of 7.04%. In comparison to its peers, K P R Mill Ltd has a much higher PE ratio of 40.73, while Vardhman Textile, considered fair, has a PE of 15.27, highlighting that Angel Fibers is trading at a premium relative to some competitors.
The company's financial metrics suggest that it may not justify its current valuation, especially with a low ROCE of 2.04%. Additionally, the stock has underperformed against the Sensex over various periods, particularly over the past year, where it has declined by 15.06% compared to a 2.08% drop in the Sensex. Overall, the data points to Angel Fibers being overvalued in the current market environment.