Is Chennai Ferrous overvalued or undervalued?

As of 10 November 2025, the valuation grade for Chennai Ferrous has moved from attractive to fair. This indicates a shift in perception regarding the company's valuation, suggesting it is now fairly valued. The company exhibits a PE ratio of 10.16, an EV to EBITDA of 6.81, and a ROE of 8.86%.
In comparison with peers, Chennai Ferrous's valuation metrics are significantly lower than those of JSW Steel, which is considered expensive with a PE ratio of 47.11, and Tata Steel, which is fairly valued at a PE of 46.66. This suggests that Chennai Ferrous may be undervalued relative to its peers in the non-ferrous metals industry. Notably, while the stock has underperformed the Sensex over the past year, it has shown a strong performance over the five-year period, with a return of 2646.30% compared to the Sensex's 93.02%.