Is Garg Furnace overvalued or undervalued?

As of 31 October 2025, Garg Furnace has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, supported by a price-to-earnings (PE) ratio of 11.59, an EV to EBITDA ratio of 10.05, and a return on equity (ROE) of 13.69%. In comparison to its peers, Garg Furnace's valuation stands out, particularly against JSW Steel, which is deemed expensive with a PE ratio of 48.13, and Tata Steel, which is fairly valued at a PE of 47.06.
Despite recent stock performance showing a significant decline, with a year-to-date return of -42.03% compared to a 7.42% increase in the Sensex, the underlying fundamentals suggest that Garg Furnace is positioned favorably within its industry. The attractive valuation, combined with strong ratios relative to its peers, indicates that the stock may present a buying opportunity for investors looking for value in the iron and steel sector.