Is GSM Foils overvalued or undervalued?

As of 3 October 2025, the valuation grade for GSM Foils has moved from very expensive to expensive. The company appears to be overvalued based on its current financial ratios. The PE ratio stands at 31.71, while the EV to EBITDA ratio is 21.29, both of which are significantly higher than its peers. For instance, Hindalco Industries has a PE ratio of 10.13 and an EV to EBITDA of 6.77, indicating a substantial valuation gap.
In comparison to its peers, GSM Foils' PEG ratio is notably at 0.00, which suggests no growth expectations are priced in, yet its high valuation metrics do not support this. The company's ROCE and ROE are strong at 30.56% and 30.89%, respectively, but these returns do not justify the expensive valuation relative to peers like National Aluminium, which has a PE of 7.09 and an EV to EBITDA of 4.28. Overall, GSM Foils is overvalued in the current market context, despite its recent strong stock performance compared to the Sensex, particularly over the past year, where it has returned 182.01% against a -1.41% return for the index.