Is Gravita India overvalued or undervalued?

As of 29 August 2025, Gravita India has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 35.28, an EV to EBITDA of 33.59, and a PEG ratio of 1.45. In comparison to its peers, Hindustan Zinc is very expensive with a PE of 17.19, while Vedanta is very attractive at a PE of 12.46, indicating that Gravita India is positioned more favorably within its industry.
Despite the fair valuation, Gravita India has experienced a significant decline in stock performance, with a year-to-date return of -26.22%, contrasting sharply with the Sensex's positive return of 2.14% over the same period. This underperformance may suggest that the market has yet to fully recognize the company's fair valuation relative to its peers.