Is Palco Metals Ltd overvalued or undervalued?

As of 11 August 2025, Palco Metals Ltd's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 11.64, an EV to EBITDA of 7.20, and a ROE of 57.41%. In comparison to its peers, Hindalco Industries, which is rated very attractive, has a PE ratio of 9.16, while National Aluminium, rated attractive, has a PE of 6.00, suggesting that Palco is priced higher relative to these competitors.
Despite its strong performance metrics, including a high ROCE of 40.10% and an impressive 52-week return of 145.38%, the current valuation reflects a more cautious outlook. The recent stock performance shows a decline of 13.34% year-to-date, contrasting with the Sensex's gain of 3.15% in the same period, which may indicate market concerns or profit-taking. Overall, while Palco Metals Ltd remains a solid player in the non-ferrous metals industry, its current valuation suggests it is fairly priced amidst a competitive landscape.