Is Chennai Ferrous overvalued or undervalued?

As of 14 November 2025, Chennai Ferrous has moved from a fair to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 11.92, an EV to EBITDA of 7.60, and a Price to Book Value of 0.77, indicating a favorable valuation relative to its earnings and assets.
In comparison to its peers, Chennai Ferrous stands out with a significantly lower PE ratio than JSW Steel, which has a PE of 46.61, and a more attractive EV to EBITDA ratio compared to Jindal Steel at 13.05. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -11.98% compared to the Sensex's 8.22%, the underlying valuation metrics suggest that the stock presents a compelling investment opportunity at its current price of 115.75.