Is Prec. Wires (I) overvalued or undervalued?

Aug 12 2025 08:04 AM IST
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As of August 11, 2025, Prec. Wires (I) is considered very expensive and overvalued with a PE ratio of 32.76 and an EV to EBITDA of 15.34, significantly higher than peers like Hindustan Zinc and Vedanta, despite a strong one-year return of 14.32%.
As of 11 August 2025, the valuation grade for Prec. Wires (I) has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 32.76, a Price to Book Value of 5.39, and an EV to EBITDA of 15.34, all of which suggest that the stock is trading at a premium compared to its earnings and assets.

In comparison to peers, Hindustan Zinc has a PE ratio of 17.11 and an EV to EBITDA of 10.28, while Vedanta presents a more attractive valuation with a PE of 12.74 and an EV to EBITDA of 5.26. These comparisons highlight that Prec. Wires (I) is significantly more expensive than its industry counterparts. Despite a strong one-year return of 14.32% compared to the Sensex's 1.13%, the current valuation metrics indicate that the stock may not be justified at its present price level.
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