Is Borana Weaves overvalued or undervalued?

As of 14 October 2025, Borana Weaves has moved from a fair to an attractive valuation grade, indicating a shift in investor sentiment. The company appears to be undervalued based on its current metrics, with a PE ratio of 14.47, an EV to EBITDA of 10.28, and a remarkable ROE of 46.60%. These figures suggest that the stock is trading at a reasonable price relative to its earnings and cash flows.
In comparison to its peers, Borana Weaves stands out favorably; for instance, K P R Mill Ltd is considered very expensive with a PE ratio of 42.08, while Trident is rated fair with a PE of 32.54. Additionally, both Welspun Living and Vardhman Textile are also classified as attractive, with PE ratios of 22.1 and 13.43, respectively. Given these comparisons and the company's strong financial ratios, Borana Weaves is positioned as an attractive investment opportunity, especially as it has underperformed the Sensex over the past week but shows potential for recovery.