Is Chennai Ferrous overvalued or undervalued?

As of 14 November 2025, the valuation grade for Chennai Ferrous has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 11.92, an EV to EBITDA of 7.60, and an EV to Sales ratio of 0.19, all of which suggest that the stock is trading at a discount compared to its earnings and sales potential.
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 is also more favorable than Tata Steel's PE of 29.2. The attractive valuation of Chennai Ferrous is reinforced by its EV to EBITDA ratio, which is lower than that of both JSW Steel and Jindal Steel, indicating a more favorable valuation in the non-ferrous metals sector. 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 company's fundamentals suggest it is well-positioned for potential recovery and growth.