Is Garg Furnace overvalued or undervalued?

As of 18 November 2025, Garg Furnace's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 8.97, a Price to Book Value of 0.90, and an EV to EBITDA of 8.72. These ratios suggest that Garg Furnace is trading at a discount compared to its peers.
In comparison to notable competitors, JSW Steel has a much higher PE ratio of 46.33 and an EV to EBITDA of 13.64, while Tata Steel shows a PE of 28.91 and an EV to EBITDA of 10.5. This stark contrast highlights Garg Furnace's undervaluation in the iron and steel sector. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -42.85% versus the Sensex's 8.36%, the company's strong fundamentals and favorable valuation metrics position it as a compelling investment opportunity.