Is Angel Fibers overvalued or undervalued?

As of 10 October 2025, the valuation grade for Angel Fibers has moved from risky to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current financial ratios, including a PE ratio of 25.92, an EV to EBITDA of 11.70, and a ROE of 6.58%. These metrics suggest that the stock is priced higher than its earnings and cash flow generation capabilities would justify.
In comparison to its peers, Angel Fibers' valuation stands out, particularly against K P R Mill Ltd, which has a much higher PE ratio of 41.5, and Trident, which is rated fair with a PE of 33.16. The stark contrast in valuation indicates that Angel Fibers is not only overvalued but also underperforming relative to its industry. Additionally, the company's stock has underperformed against the Sensex over various time frames, including a 1-year return of -17.01% compared to the Sensex's 1.09%, reinforcing the notion of its overvaluation.