Is LWS Knitwear overvalued or undervalued?

As of 14 October 2025, the valuation grade for LWS Knitwear has moved from attractive to very attractive. The company is currently undervalued, with a price-to-earnings (PE) ratio of 9.48, a price-to-book value of 0.77, and an EV to EBITDA ratio of 6.82. In comparison to its peers, K P R Mill Ltd is very expensive with a PE ratio of 42.08, while Trident is rated fair with a PE of 32.54.
LWS Knitwear's financial metrics indicate a strong position within its industry, particularly when considering its low valuation ratios relative to peers. The company's return on capital employed (ROCE) stands at 9.39%, and its return on equity (ROE) is at 8.14%. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 35.48% compared to a 4.98% increase in the index, the fundamental valuation suggests that LWS Knitwear presents a compelling investment opportunity at its current price of 16.00.