Is Gujarat Intrux overvalued or undervalued?

As of 24 October 2025, the valuation grade for Gujarat Intrux has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers in the castings and forgings industry. Key ratios include a PE ratio of 14.52, an EV to EBITDA of 8.77, and a PEG ratio of 0.84, all of which suggest that the company is trading at a discount relative to its earnings growth potential.
In comparison to peers, Gujarat Intrux's PE ratio is notably lower than that of JSW Steel at 45.42 and Tata Steel at 44.89, both of which are rated as fair. Additionally, Gujarat Intrux's EV to EBITDA ratio of 8.77 is more favorable than the industry average, reinforcing its attractive valuation. Despite recent underperformance with a year-to-date return of -8.18% compared to the Sensex's 7.77%, the long-term performance remains strong, with a three-year return of 218.06%. This suggests that while the stock may be facing short-term challenges, its long-term fundamentals are robust, further supporting the undervaluation thesis.