Is Manaksia Steels overvalued or undervalued?

Sep 24 2025 08:05 AM IST
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As of September 23, 2025, Manaksia Steels is considered overvalued with a PE ratio of 26.99 and unfavorable valuation metrics compared to peers like Tata Steel and JSW Steel, despite a recent stock return of -8.62% against a -3.33% decline in the Sensex.
As of 23 September 2025, the valuation grade for Manaksia Steels has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 26.99, an EV to EBIT of 29.62, and an EV to EBITDA of 20.99. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flows.

In comparison to its peers, Manaksia Steels' valuation metrics appear less favorable. For instance, Tata Steel, which is rated attractive, has a PE ratio of 44.55 and an EV to EBITDA of 11.48, while JSW Steel, rated fair, has a PE of 54.38 and an EV to EBITDA of 14.34. The disparity in these ratios further reinforces the conclusion that Manaksia Steels is overvalued. Despite a strong performance over the long term, the recent stock return of -8.62% over the past year contrasts with the Sensex's decline of only -3.33%, highlighting the potential mispricing in the current market.
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