Is BSL overvalued or undervalued?

As of 29 May 2025, BSL's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE Ratio of 17.31, an EV to EBITDA of 9.70, and a Price to Book Value of 1.25, which are favorable compared to industry peers.
In comparison to its peers, BSL's valuation metrics stand out, particularly against K P R Mill Ltd, which has a much higher PE Ratio of 47.51, and Trident, which has a PE Ratio of 42.6. This suggests that BSL offers a more attractive entry point for investors. Notably, while BSL has experienced a decline in stock price recently, with a year-to-date return of -50.71% compared to the Sensex's positive return of 5.62%, its underlying valuation remains compelling.