Is Bothra Metals overvalued or undervalued?

As of 29 August 2025, Bothra Metals has moved from a risky to an expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 22.68, an EV to EBITDA of 28.38, and a ROCE of only 3.44%, which indicates limited profitability relative to its capital employed.
In comparison to its peers, Bothra Metals' PE Ratio is significantly higher than Hindalco Industries at 9.15 and National Aluminium at 5.97, both of which are rated attractive. Additionally, the PEG Ratio of Bothra Metals stands at 0.94, suggesting that despite its high valuation, growth expectations may not justify the price. While Bothra Metals has outperformed the Sensex over the past year with a return of 29.63% compared to the Sensex's -2.83%, the overall valuation metrics indicate that it is not a favorable investment at its current price of 12.25.