Is Jindal Steel overvalued or undervalued?

As of 29 August 2025, Jindal Steel's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, supported by a PE ratio of 23.05, an EV to EBITDA of 11.31, and a ROCE of 11.27%. In comparison to its peers, Jindal Steel's valuation metrics stand out; for instance, JSW Steel has a significantly higher PE ratio of 49.05, while Tata Steel, also attractive, has a lower EV to EBITDA of 10.58.
Despite recent stock performance showing a decline of 4.91% over the past week compared to a 1.84% drop in the Sensex, Jindal Steel's long-term returns are impressive, with a 338.38% increase over the last five years. This strong performance, coupled with its attractive valuation metrics, reinforces the conclusion that Jindal Steel is currently undervalued in the market.