Is Maithan Alloys overvalued or undervalued?

As of 2 July 2025, Maithan Alloys has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 5.62, a Price to Book Value of 0.95, and an EV to EBITDA of 11.85. These ratios indicate a strong valuation position compared to its peers, particularly when considering Indian Metals, which has a PE of 11.14 and an EV to EBITDA of 6.93, and Nagpur Power, which is deemed expensive with a PE of 58.81.
The PEG ratio for Maithan Alloys stands at an impressive 0.07, suggesting significant growth potential relative to its price. Additionally, the company's ROE is a robust 16.82%, further supporting its undervaluation narrative. While the stock has underperformed the Sensex over the past year with a return of -0.49% compared to the Sensex's 5.00%, its strong historical performance over the longer term, including a 158.47% return over the past five years, highlights its potential for recovery and growth.