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 investment value. The company is currently considered overvalued, particularly when compared to its peers. Key ratios reveal a PE ratio of 95.32, an EV to EBITDA of 17.76, and a ROCE of only 4.54%, which raises concerns about its profitability relative to its valuation.
In comparison to its peers, Birla Cable's PE ratio significantly exceeds that of Polycab India at 47.12 and Havells India at 64.02, both classified as fair. Additionally, while Finolex Cables is rated attractive with a much lower PE of 19.4, Birla Cable's high valuation does not seem justified given its recent performance, including a year-to-date return of -25.96% compared to a positive 7.42% from the Sensex. This further supports the conclusion that Birla Cable is currently overvalued in the market.