Is Arex Industries overvalued or undervalued?

As of 22 September 2025, Arex Industries has moved from a fair to attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 28.83, an EV to EBITDA of 9.66, and a ROE of 8.02%. In comparison to its peers, K P R Mill Ltd is classified as very expensive with a PE ratio of 46.89, while Vardhman Textile is rated fair with a PE ratio of 14.29.
Despite a recent decline in stock performance, with a year-to-date return of -7.41% compared to the Sensex's 5.15%, the valuation metrics suggest that Arex Industries presents a compelling investment opportunity. The attractive valuation, combined with competitive ratios relative to peers, indicates that the company may be undervalued in the current market.