Is Metal Coatings overvalued or undervalued?

As of 3 November 2025, the valuation grade for Metal Coatings has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its metrics, with a PE ratio of 22.99, an EV to EBIT of 10.48, and a Price to Book Value of 1.21. Compared to peers, JSW Steel is considered expensive with a PE of 47.58, while Tata Steel is also fairly valued at a PE of 46.98, highlighting that Metal Coatings is more competitively priced within the industry.
Despite its fair valuation, Metal Coatings has underperformed relative to the Sensex, particularly in the year-to-date period, showing a decline of 20.76% compared to the Sensex's gain of 7.47%. This underperformance, alongside a relatively low ROE of 5.26% and a dividend yield of 1.44%, suggests that while the company is not overvalued, it may face challenges in delivering growth and returns that could justify a higher valuation in the future.