Is Auro Impex overvalued or undervalued?

As of 18 September 2025, Auro Impex's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 12.64, an EV to EBITDA of 9.58, and a ROCE of 12.38%.
In comparison to its peers, Auro Impex's PE ratio is significantly lower than that of JSW Steel, which has a PE of 53.53, and Tata Steel, which is rated attractive with a PE of 44.24. This suggests that Auro Impex may be undervalued relative to its peers, particularly given its competitive ROE of 11.08%. However, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -41.06% compared to the Sensex's 7.52%, reinforcing the notion that the stock may not be capturing its fair value in the market.