Is Nahar Spinning overvalued or undervalued?

As of 29 May 2025, the valuation grade for Nahar Spinning has moved from attractive to very attractive. The company is currently considered undervalued, supported by a PE ratio of 62.31, an EV to EBITDA ratio of 12.91, and a PEG ratio of 0.47. In comparison to peers, K P R Mill Ltd is categorized as very expensive with a PE of 47.51, while Trident is rated fair with a PE of 42.6, indicating that Nahar Spinning's valuation metrics are more favorable.
Despite a recent decline in stock performance relative to the Sensex over the past week, Nahar Spinning has shown strong returns over longer periods, with a remarkable 687.96% increase over the last five years compared to the Sensex's 143.02%. This suggests that while the stock may have faced short-term volatility, its long-term growth potential remains robust, reinforcing its undervalued status in the current market.