Is Auro Impex overvalued or undervalued?

As of 24 September 2025, Auro Impex's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its PE ratio of 13.91, an EV to EBIT of 10.85, and an EV to EBITDA of 10.26. In comparison to peers, JSW Steel has a significantly higher PE ratio of 54.89, while Tata Steel, rated as attractive, has a PE of 44.41, further emphasizing Auro Impex's relative overvaluation.
The company's financial metrics, including a ROCE of 12.38% and a ROE of 11.08%, suggest that while it generates reasonable returns, it does not justify the current price level when compared to its peers. Furthermore, Auro Impex's recent stock performance has been poor, with a year-to-date return of -35.1%, contrasting sharply with the Sensex's positive return of 5.97%. This underperformance reinforces the conclusion that Auro Impex is overvalued in the current market environment.