Is Bhandari Hosiery overvalued or undervalued?

As of 13 June 2025, Bhandari Hosiery's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, especially when considering its current PE ratio of 17.15, a price to book value of 0.89, and an EV to EBITDA ratio of 7.85. These ratios suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Bhandari Hosiery's valuation metrics stand out favorably. For instance, K P R Mill Ltd is classified as very expensive with a PE ratio of 45.8, while Trident is rated fair with a PE of 42.28. Additionally, Vardhman Textile, which is considered expensive, has a PE of 15.83, further highlighting Bhandari Hosiery's relative attractiveness in the market. Despite a challenging year-to-date return of -21.28% compared to the Sensex's 3.81%, the long-term performance of 400.79% over five years reinforces the potential for recovery and growth in the company's valuation.