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 appears to be undervalued, with a PE ratio of 11.92, an EV to EBITDA of 7.60, and an EV to Capital Employed of 0.75. In comparison to its peers, JSW Steel has a significantly higher PE ratio of 46.61 and an EV to EBITDA of 13.71, while Tata Steel, which is also rated attractive, has a PE of 29.2 and an EV to EBITDA of 10.58.
Despite the recent stock performance showing a decline of 10.58% over the past week compared to a 1.62% gain in the Sensex, the fundamental ratios suggest that Chennai Ferrous is positioned favorably within its industry. The company's low valuation metrics relative to peers indicate potential for growth and suggest that it may be a good investment opportunity at its current price of 115.75.