Is Bajaj Steel Inds overvalued or undervalued?

As of 16 June 2025, Bajaj Steel Industries has moved from a fair to an attractive valuation grade. The company appears to be undervalued, with a PE ratio of 22.45, an EV to EBITDA ratio of 15.46, and a ROCE of 21.22%. In comparison to its peers, Bajaj Steel's valuation metrics are significantly more favorable; for instance, LMW has a PE ratio of 169.04 and an EV to EBITDA of 112.29, while Integra Engineering shows a PE of 38.54 and an EV to EBITDA of 23.77.
Despite recent underperformance relative to the Sensex, with a year-to-date return of -17.78% compared to the Sensex's 4.68%, the long-term performance remains strong, with a 3-year return of 447.17%. This indicates that while the short-term outlook may be challenging, the overall valuation suggests that Bajaj Steel Industries is positioned for potential growth, reinforcing its status as undervalued in the current market.