Is GSM Foils overvalued or undervalued?

As of 9 October 2025, the valuation grade for GSM Foils has moved from very expensive to expensive, indicating a slight improvement in perceived value. Despite this change, the company remains overvalued in the current market context. The PE ratio stands at 32.15, while the EV to EBITDA ratio is 21.57, both of which are significantly higher than those of its peers. For instance, Hindalco Industries, considered attractive, has a PE ratio of 10.05, and National Aluminium, also attractive, has a PE ratio of 7.36.
In comparison to its peers, GSM Foils' valuation metrics suggest it is overvalued, particularly when looking at the EV to EBIT ratio of 21.97 against the industry averages. The company's return on capital employed (ROCE) is a strong 30.56%, but this does not sufficiently justify its high valuation ratios. Additionally, while GSM Foils has outperformed the Sensex significantly over the past year with a return of 178.67% compared to the Sensex's 0.80%, this performance does not mitigate the current overvaluation indicated by its ratios relative to peers.