Is GMM Pfaudler overvalued or undervalued?

As of 14 November 2025, GMM Pfaudler's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 48.03, an EV to EBITDA of 15.17, and a ROCE of 14.59%.
In comparison to peers, GMM Pfaudler's valuation stands out, particularly against Rail Vikas, which has a PE ratio of 58.94, and Tube Investments, with a PE ratio of 94.36. Despite its high valuation metrics, GMM Pfaudler's growth potential and operational efficiency suggest it may be undervalued relative to its peers. Notably, while the stock has underperformed the Sensex over the past year, it has shown a strong return over the last decade, reinforcing the potential for future growth.