Is Auro Impex overvalued or undervalued?

As of 23 September 2025, Auro Impex's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 12.08, an EV to EBITDA of 9.28, and a ROE of 11.08%. In comparison to its peers, JSW Steel has a significantly higher PE ratio of 54.38, while Tata Steel is rated attractive with a PE of 44.55, highlighting that Auro Impex is positioned more conservatively within its industry.
Despite the fair valuation, Auro Impex has underperformed relative to the Sensex, with a year-to-date return of -43.64% compared to the Sensex's gain of 6.45%. This underperformance, coupled with its current valuation metrics, suggests that while Auro Impex is not overvalued, it may face challenges in regaining investor confidence amidst a competitive landscape.