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 undervalued, with a PE ratio of 11.59, an EV to EBITDA of 10.05, and a ROE of 13.69%. In comparison to its peers, Garg Furnace's valuation stands out; for instance, JSW Steel is considered expensive with a PE of 48.13, while Tata Steel is fairly valued at a PE of 47.06.
Despite recent stock performance trailing the Sensex, with a year-to-date return of -42.03% compared to the Sensex's 7.42%, the underlying financial metrics suggest that Garg Furnace presents a compelling investment opportunity at its current price of 156.80. The company's strong ratios, particularly its low EV to Sales of 0.28 and a robust ROCE of 13.05%, further reinforce the case for its undervaluation in the market.