Is Panchmahal Steel overvalued or undervalued?

As of 31 October 2025, Panchmahal Steel's valuation grade has moved from attractive to fair, indicating a shift in its perceived market value. The company is currently considered overvalued based on its financial ratios, particularly with a PE Ratio of -328.33, an EV to EBITDA of 125.69, and a Price to Book Value of 0.37. These figures suggest significant concerns regarding profitability and valuation relative to its book value.
When comparing Panchmahal Steel to its peers, JSW Steel is deemed expensive with a PE of 48.13, while Tata Steel is classified as fair with a PE of 47.06. This stark contrast highlights Panchmahal's underperformance in profitability metrics, which further supports the conclusion of overvaluation. Additionally, despite recent stock performance showing a 17.89% year-to-date return compared to the Sensex's 7.42%, the underlying financial ratios indicate that the stock is not justified at its current price level.