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 perceived value. The company is currently overvalued, with a PE ratio of 25.92, an EV to EBITDA ratio of 11.70, and a ROE of 6.58%. In comparison to its peers, K P R Mill Ltd has a much higher PE ratio of 41.5, while Vardhman Textile, which is rated as attractive, has a considerably lower PE of 13.63.
The valuation metrics suggest that Angel Fibers is not only overvalued relative to its peers but also underperforming in terms of returns, with a year-to-date stock return of -5.17% compared to a positive 5.58% return from the Sensex. Given these factors, investors may want to exercise caution when considering this stock, as its current valuation does not align with its financial performance.