Is Cantabil Retail overvalued or undervalued?

As of 25 September 2025, Cantabil Retail's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its financial metrics, with a PE ratio of 28.04, an EV to EBITDA ratio of 11.97, and a PEG ratio of 0.94. These figures suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison to its peers, Cantabil Retail's valuation appears competitive; for instance, K P R Mill Ltd is deemed very expensive with a PE ratio of 44.72, while Vardhman Textile is also rated fair with a significantly lower PE of 14.06. Notably, Cantabil's return over the past year has outperformed the Sensex, with a gain of 6.46% compared to the Sensex's decline of 4.71%. This performance, coupled with its fair valuation, suggests that Cantabil Retail is currently undervalued relative to its growth prospects and market dynamics.