Is Prakash Industri overvalued or undervalued?

As of 12 August 2025, Prakash Industri has moved from a fair to an attractive valuation grade, indicating a shift in perception regarding its value. The company is currently considered undervalued, supported by a PE ratio of 8.25, a Price to Book Value of 0.89, and an EV to EBITDA of 5.88. These ratios suggest that the company is trading at a significant discount compared to its peers in the ferrous metals industry.
In comparison to its peers, Prakash Industri's PE ratio is notably lower than that of JSW Steel, which stands at 50.15, and Tata Steel, which has a PE ratio of 41.21. Additionally, while Prakash's EV to EBITDA ratio of 5.88 is more favorable than many competitors, it is still attractive when compared to the industry average. Despite a recent decline in stock price, Prakash Industri has demonstrated strong long-term performance with a 3-year return of 210.60%, significantly outperforming the Sensex's 34.93% over the same period.