Is Ganga Forging overvalued or undervalued?

As of 16 October 2025, Ganga Forging's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its worth. The company is currently considered undervalued, particularly when examining its key financial ratios. The PE ratio stands at -77.66, reflecting significant losses, while the EV to EBITDA ratio is 42.16 and the Price to Book Value is 1.62, suggesting that the market may not fully recognize the potential value of the company.
In comparison to its peers, Ganga Forging's valuation metrics reveal a stark contrast. Bharat Forge, rated fair, has a PE ratio of 58.92, while CIE Automotive, also attractive, boasts a much lower EV to EBITDA ratio of 12.17. Despite Ganga Forging's recent stock performance lagging behind the Sensex over the past year, with a decline of 48.33% compared to the Sensex's 2.46% increase, its current valuation suggests that it may present a buying opportunity for investors looking for growth in the castings and forgings industry.