Is Jigar Cables overvalued or undervalued?

As of 28 August 2025, Jigar Cables' valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued based on its financial ratios, with a PE ratio of 28.13, an EV to EBITDA of 12.61, and a PEG ratio of 0.38. These figures suggest that investors are paying a premium for the stock relative to its earnings growth potential.
When compared to peers, Jigar Cables stands out with a lower PE ratio than Polycab India, which has a PE of 48.19, but is still higher than Finolex Cables, which has a PE of 20.18 and is considered attractive. This indicates that while Jigar Cables is more affordable than some competitors, it remains overpriced relative to its earnings and growth prospects. Additionally, the company's recent stock performance has been relatively strong, with a 3-year return of 169.23%, outperforming the Sensex's 36.11% in the same period, which may have contributed to the elevated valuation.