Is Borana Weaves overvalued or undervalued?

As of 3 October 2025, Borana Weaves has experienced a grade change from attractive to fair. The current valuation indicates that the company is fairly valued. Key ratios include a PE Ratio of 14.58, an EV to EBITDA of 10.35, and a ROE of 46.60%.
In comparison with peers, Borana Weaves' PE Ratio is significantly lower than K P R Mill Ltd, which is at 44.24, and Trident, which stands at 33.41. Notably, Vardhman Textile, considered attractive, has a PE Ratio of 13.84, suggesting that Borana Weaves is competitively positioned within its industry. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 3.21% compared to the Sensex's 0.97%, reinforcing its valuation narrative.