Is GSM Foils overvalued or undervalued?

As of 1 October 2025, the valuation grade for GSM Foils has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 33.22, an EV to EBITDA of 22.24, and a Price to Book Value of 10.26, all of which are considerably higher than industry norms.
In comparison to its peers, Hindalco Industries and National Aluminium, which have PE Ratios of 9.95 and 6.88 respectively, GSM Foils stands out as significantly overvalued. The PEG Ratio of 0.00 further emphasizes the lack of growth potential relative to its price. Notably, GSM Foils has outperformed the Sensex in various time frames, with a remarkable 1-year stock return of 193.29% compared to the Sensex's decline of 3.72%, but this does not justify its current valuation.