Is Guj. Toolroom overvalued or undervalued?

As of 8 May 2024, the valuation grade for Guj. Toolroom has moved from fair to very attractive. This indicates that the company is currently undervalued. Key ratios supporting this assessment include a PE Ratio of 3.40, an EV to EBITDA of 4.24, and a Price to Book Value of 0.55, all of which suggest significant undervaluation compared to industry peers.
In comparison to its peers, Guj. Toolroom stands out with a much lower PE Ratio than companies like Rail Vikas, which has a PE of 69.76, and Tube Investments, with a PE of 87.5. While the industry is generally characterized by high valuations, Guj. Toolroom's metrics indicate it is trading at a substantial discount. Additionally, despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -51.60% compared to the Sensex's 5.63%, the long-term performance over three and five years shows remarkable gains of 608.26% and 1986.72%, respectively, reinforcing the potential for recovery and growth.