Is Gallantt Ispat L overvalued or undervalued?

As of 10 November 2025, Gallantt Ispat L has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 32.33, an EV to EBITDA of 24.74, and a Price to Book Value of 0.51.
In comparison to its peers, Gallantt Ispat L's valuation stands out as significantly higher, with JSW Steel at a PE of 47.11 and Tata Steel at a PE of 46.66, both categorized as expensive. Additionally, the company’s ROCE and ROE are notably low at 1.87% and 1.59%, respectively, indicating inefficiencies relative to its valuation. Despite its recent stock performance, which has outpaced the Sensex with a year-to-date return of 90.64% compared to the Sensex's 6.91%, the current valuation appears unsustainable given the underlying financial ratios.