Is Chennai Ferrous overvalued or undervalued?

As of 3 October 2025, Chennai Ferrous has moved from a fair to an attractive valuation grade. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE ratio of 10.64, an EV to EBITDA of 7.14, and a Price to Book Value of 0.94, which suggest that the stock is trading at a discount compared to its intrinsic value.
In comparison to its peers, Chennai Ferrous stands out with a significantly lower PE ratio than JSW Steel at 55.61 and Tata Steel at 44.55, both of which are rated as fair. Additionally, the EV to EBITDA ratio of 7.14 is more favorable than that of Jindal Steel, which is at 12.67. Despite a challenging year with a stock return of -9.60% compared to the Sensex's -1.56%, the long-term performance over five years shows a remarkable return of 2777.38%, reinforcing the attractiveness of the current valuation.