Is Ganga Forging overvalued or undervalued?

As of 14 October 2025, Ganga Forging's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of -80.88, an EV to EBITDA of 43.49, and a ROCE of 3.22%. In comparison to its peers, Bharat Forge has a PE ratio of 57.1 and an EV to EBITDA of 23.84, while Ramkrishna Forging shows a PE of 28.33 and an EV to EBITDA of 20.16, highlighting that Ganga Forging's valuation metrics are significantly less favorable.
Despite recent stock performance showing a 13.88% return over the past week, Ganga Forging has underperformed the Sensex over the year with a -48.2% return compared to a mere 0.07% for the index. This underperformance, combined with the negative PE ratio and low ROE of -2.08%, suggests that the company is not positioned favorably within its industry. Overall, Ganga Forging's current valuation reflects a fair assessment given its financial ratios and peer comparisons.