Is Birla Cable overvalued or undervalued?

Aug 10 2025 08:01 AM IST
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As of August 8, 2025, Birla Cable is considered overvalued with a high PE ratio of 81.74 and an EV to EBIT of 35.26, indicating a shift to an attractive valuation grade, especially when compared to peers like Polycab India and Havells India, while also underperforming the Sensex with a year-to-date return of -22.39%.
As of 8 August 2025, Birla Cable's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high PE ratio of 81.74, an EV to EBIT of 35.26, and a Price to Book Value of 1.90. These ratios suggest that investors are paying a premium for the stock relative to its earnings and book value.

In comparison to its peers, Birla Cable's PE ratio significantly exceeds that of Polycab India at 45.86 and Havells India at 66.12, both of which are also considered expensive. The EV to EBITDA ratio of 18.58 for Birla Cable is higher than that of Finolex Cables, which is rated very attractive with an EV to EBITDA of 19.20. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -22.39% compared to the Sensex's 2.20%. This further reinforces the view that Birla Cable is currently overvalued.
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