Is Gallantt Ispat L overvalued or undervalued?

As of 4 November 2025, Gallantt Ispat L has moved from a valuation grade of very expensive to expensive. The company appears to be overvalued based on its current metrics. The PE ratio stands at 27.67, while the EV to EBITDA ratio is at 21.72, both of which are significantly higher than peers like Tata Steel, which has a PE of 46.11 and an EV to EBITDA of 11.77, and SAIL, which is rated very attractive with an EV to EBITDA of 23.21.
In comparison to its peers, Gallantt Ispat L's PEG ratio of 0.50 suggests that it may not be justified at its current price given the growth expectations. The company's return on capital employed (ROCE) and return on equity (ROE) are relatively low at 1.87% and 1.59%, respectively, further indicating potential overvaluation. Despite a strong year-to-date return of 63.15% compared to the Sensex's 6.81%, the valuation metrics suggest that investors should be cautious as the stock may not sustain its current price levels.