Is Ashiana Ispat overvalued or undervalued?

As of 6 August 2025, the valuation grade for Ashiana Ispat has moved from attractive to very attractive. The company is currently considered undervalued, particularly given its low PE ratio of -3.42 and price to book value of 0.42, which suggest significant pricing discrepancies relative to its intrinsic value. Additionally, the EV to EBITDA ratio stands at 29.39, indicating that the market may not be fully recognizing the company's earnings potential.
When comparing Ashiana Ispat to its peers, JSW Steel has a PE ratio of 49.93 and an EV to EBITDA of 13.43, while Tata Steel shows a PE of 40.82 and an EV to EBITDA of 10.79. These comparisons highlight that Ashiana Ispat is trading at a substantial discount relative to its competitors, reinforcing the notion of undervaluation. Despite a challenging year with a YTD return of -47.44% compared to the Sensex's 3.08%, the long-term performance over five years shows a remarkable gain of 218.32%, suggesting potential for recovery and growth in the future.