Is Arvind Ltd overvalued or undervalued?

As of 20 August 2021, the valuation grade for Arvind Ltd moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 26.49, an EV to EBITDA of 12.66, and a ROCE of 11.37%.
In comparison to its peers, Arvind Ltd's PE ratio is significantly lower than K P R Mill Ltd, which has a PE of 47.51, and Trident, which stands at 42.6. This suggests that Arvind Ltd may be undervalued relative to these competitors. Despite recent stock performance showing a decline year-to-date, it has outperformed the Sensex over a three-year period with a return of 260.51% compared to the Sensex's 49.17%.