Is Garg Furnace overvalued or undervalued?

As of 4 November 2025, Garg Furnace's valuation grade has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a PE ratio of 11.73, an EV to EBITDA of 10.19, and a ROE of 13.69%. When compared to peers, Garg Furnace's PE ratio is significantly lower than that of JSW Steel, which is considered expensive at 47.14, and Tata Steel, which is fairly valued at 46.11.
Given these ratios and the peer comparison, Garg Furnace is positioned in a fair valuation range, especially considering its EV to Sales ratio of 0.29, which indicates a low market valuation relative to its sales. Despite recent stock performance trailing the Sensex, particularly with a year-to-date return of -41.31% compared to the Sensex's 6.81%, the overall valuation suggests that the company is not undervalued or overvalued at this time.