Is Bothra Metals overvalued or undervalued?

As of 28 October 2025, Bothra Metals has moved from a risky to an expensive valuation grade. The company appears overvalued based on its current financial ratios, which include a PE Ratio of 40.43, an EV to EBIT of 24.25, and an EV to EBITDA of 20.11. In comparison to its peers, Hindalco Industries, which has a PE of 11.02, and National Aluminium with a PE of 7.59, Bothra Metals' valuation stands out as significantly higher.
The company's return on capital employed (ROCE) is notably low at 3.70%, and its return on equity (ROE) is just 2.05%, further indicating inefficiencies in generating returns relative to its market valuation. Additionally, Bothra Metals has underperformed against the Sensex over the past year, with a stock return of -36.1% compared to the Sensex's 5.78%, reinforcing the notion that the stock may be overvalued in the current market environment.