Is Inducto Steel overvalued or undervalued?

As of 14 November 2025, Inducto Steel's valuation grade has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, as evidenced by its PE ratio of -15.42, a Price to Book Value of 0.60, and an EV to Sales ratio of 0.28. These ratios suggest that the market is undervaluing the company's potential, especially when compared to peers like PTC India, which has a PE ratio of 7.52 and an EV to EBITDA of 2.42, and Optiemus Infra, with a PE of 75.09 and an EV to EBITDA of 44.26.
Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -25.23% compared to the Sensex's 8.22%, the attractive valuation signals a potential turnaround. The negative ROCE of -5.16% and ROE of -9.42% highlight operational challenges, but the low valuation ratios suggest that the market may be overlooking future recovery prospects. Overall, Inducto Steel presents an opportunity for investors looking for undervalued stocks in the iron and steel sector.