Is Chaman Metallics overvalued or undervalued?

As of 28 August 2025, Chaman Metallics has moved from a fair valuation to very expensive. The company is currently overvalued, as indicated by its high PE ratio of 37.02, a Price to Book Value of 4.04, and an EV to EBITDA ratio of 32.37. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Chaman Metallics stands out with a significantly higher PE ratio than JSW Steel, which has a PE of 49.49, and Tata Steel, which has a PE of 39.5, both of which are considered fairly valued or attractive. Additionally, the company's ROCE of 5.87% and ROE of 10.91% do not justify its high valuation when compared to the industry standards. Notably, Chaman Metallics has outperformed the Sensex over the past year with a return of 51.06%, while the Sensex has declined by 2.20%, but this does not mitigate the concerns regarding its current overvaluation.