Is GSM Foils overvalued or undervalued?

As of 13 October 2025, the valuation grade for GSM Foils has moved from expensive to very expensive. The company is currently overvalued, with a PE ratio of 32.86, an EV to EBIT of 22.43, and an EV to EBITDA of 22.02. In comparison to its peers, Hindalco Industries has a PE ratio of 10.03 and National Aluminium has a PE ratio of 7.25, both of which indicate a significantly lower valuation relative to GSM Foils.
Additionally, while GSM Foils boasts impressive ROCE and ROE figures of 30.56% and 30.89% respectively, these metrics do not justify its current high valuation. The recent stock performance shows that GSM Foils has outperformed the Sensex significantly over the past year, with a return of 174.39% compared to the Sensex's 1.05%, but this does not alter the conclusion that the stock is currently overvalued.