Is Birla Cable overvalued or undervalued?

As of 12 August 2024, Birla Cable's valuation grade has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 111.52, an EV to EBITDA of 20.77, and a Price to Book Value of 2.08. These ratios suggest that despite the high PE ratio, the overall valuation metrics indicate potential for growth, especially when compared to peers like Havells India, which has a PE of 64.84, and Polycab India, at 45.49.
In the context of its industry, Birla Cable's PEG ratio stands at 0.00, highlighting a lack of growth expectations priced into the stock, which may not reflect its potential. The company's recent stock performance shows a 28.24% increase over the past month, significantly outperforming the Sensex's 3.85% return in the same period, further reinforcing the notion that Birla Cable is undervalued relative to its growth prospects and industry peers.