Is Ashnoor Textile overvalued or undervalued?

As of 13 October 2025, Ashnoor Textile's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered undervalued, with a PE ratio of 4.77, an EV to EBIT of 5.07, and a Price to Book Value of 0.88. These ratios suggest that the stock is trading at a significant discount compared to its earnings and book value.
In comparison to its peers, Ashnoor Textile's valuation metrics stand out, particularly against K P R Mill Ltd, which has a PE ratio of 41.09 and is deemed very expensive, and Trident, which is rated fair with a PE of 32.93. The PEG ratio for Ashnoor is notably low at 0.07, further supporting the argument for its undervaluation. Despite recent underperformance relative to the Sensex, particularly in the year-to-date return of -32.79% compared to the Sensex's 5.36%, the long-term performance over five years shows a remarkable return of 458.28%, highlighting the potential for recovery and growth.