Is Newmalayalam St. overvalued or undervalued?

As of 9 September 2025, the valuation grade for Newmalayalam St. has moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a Price to Earnings (PE) ratio of 12.94, an EV to EBITDA ratio of 8.01, and a Price to Book Value of 0.73, all of which suggest that the stock is trading at a discount compared to its earnings and assets.
In comparison to its peers, Newmalayalam St. stands out with a much lower PE ratio than JSW Steel at 52.99 and Tata Steel at 43.51, both of which are classified as fair or attractive. Additionally, the company's EV to EBITDA ratio of 8.01 is more favorable than that of Jindal Steel, which is at 12.23, indicating that Newmalayalam St. offers better value relative to its earnings before interest, taxes, depreciation, and amortization. Despite a recent decline in its stock price year-to-date, the valuation metrics suggest that it is positioned for potential recovery, especially given the attractive ratios compared to its industry peers.