Is Birla Cable overvalued or undervalued?

As of 7 November 2025, the valuation grade for Birla Cable has moved from fair to expensive. The company is currently deemed overvalued based on its high PE ratio of 93.31, an EV to EBIT of 35.44, and a Price to Book Value of 1.84. In comparison to its peers, Polycab India has a PE of 46.06 and Havells India stands at 62.17, both of which suggest that Birla Cable's valuation is significantly higher than these competitors.
Additionally, Birla Cable's return on equity (ROE) is notably low at 1.97%, indicating inefficiency in generating profits from its equity. The company's performance has lagged behind the Sensex, with a year-to-date return of -27.53% compared to the Sensex's 6.50%, further reinforcing the notion that the stock is overvalued in the current market environment.