Is Birla Cable overvalued or undervalued?

As of 31 October 2025, Birla Cable's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its high PE ratio of 95.32, which significantly exceeds that of its peers, such as Polycab India at 47.12 and Havells India at 64.02. Additionally, the EV to EBITDA ratio stands at 17.76, further highlighting the premium at which Birla Cable is trading compared to its industry counterparts.
In terms of financial performance, the company has a low ROCE of 4.54% and an even lower ROE of 1.97%, suggesting inefficiencies in generating returns for shareholders. The current price of 158.55 is notably below its 52-week high of 243.90, reflecting a substantial decline in stock performance, with a year-to-date return of -25.96% compared to a positive 7.42% return from the Sensex. Overall, Birla Cable is assessed as overvalued, given its high valuation ratios and poor return metrics relative to its peers.