Is Chamanlal Setia overvalued or undervalued?

As of 3 September 2025, the valuation grade for Chamanlal Setia has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 14.48, an EV to EBIT of 11.40, and a ROCE of 18.61%. In comparison, its peer KRBL has a higher PE ratio of 19.3 and an EV to EBITDA of 13.66, while GRM Overseas is deemed expensive with a PE ratio of 34.41.
Chamanlal Setia's financial metrics suggest a strong position within its industry, particularly with a PEG ratio of 0.00, indicating potential for growth at a reasonable price. Despite a recent decline in stock performance compared to the Sensex over the year, where it returned 18.57% against the Sensex's -2.41%, the long-term outlook remains positive with a 5-year return of 195.76%. Overall, the company's valuation metrics and peer comparisons support the conclusion that it is undervalued in the current market.