Is Auro Impex overvalued or undervalued?

As of 17 September 2025, Auro Impex's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a price-to-earnings (PE) ratio of 12.64, an EV to EBITDA ratio of 9.58, and a return on capital employed (ROCE) of 12.38%. In comparison to its peers, Auro Impex's PE ratio is significantly lower than that of JSW Steel, which stands at 53.19, and Tata Steel, which is at 44.05, suggesting that Auro Impex may offer better value at its current price.
The peer comparison further supports the undervaluation thesis, as Auro Impex's EV to EBITDA ratio of 9.58 is more favorable compared to Jindal Steel's 12.21 and Lloyds Metals' 34.93. Despite a challenging year with a year-to-date stock return of -41.06% compared to a 7.13% increase in the Sensex, the attractive valuation metrics suggest that Auro Impex presents a compelling investment opportunity moving forward.