Is Gloster Ltd overvalued or undervalued?

As of 17 November 2025, Gloster Ltd's valuation grade has moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued, especially when considering its PE ratio of 71.57, which, while high, is complemented by a low PEG ratio of 0.13, suggesting strong growth potential relative to its price. Additionally, the Price to Book Value stands at 0.61, indicating that the stock is trading below its book value, further supporting the undervaluation thesis.
In comparison to its peers, Gloster Ltd's valuation appears favorable; for instance, K P R Mill Ltd is deemed very expensive with a PE ratio of 44.24, while Trident, categorized as attractive, has a PE of 32.69. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -12.6% compared to the Sensex's 8.72%, the overall valuation metrics suggest that Gloster Ltd presents a compelling investment opportunity in the Paper, Forest & Jute Products industry.