Is Precision Metal. overvalued or undervalued?

As of 16 July 2025, the valuation grade for Precision Metal has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios include a PE ratio of 43.01, an EV to EBIT of 30.88, and a ROE of 0.91%. In comparison to peers, JSW Steel is rated fair with a PE of 66.45, while Tata Steel is rated attractive with a PE of 51.85, highlighting that Precision Metal's valuation is significantly higher than these competitors.
The company's financial metrics suggest a concerning outlook, particularly with a low ROCE of 0.20% and a PEG ratio of 0.00%, which further reinforces the overvaluation narrative. Additionally, while Precision Metal has seen a 1-month stock return of 18.34% compared to a 1.06% return for the Sensex, its year-to-date performance is down 38.56%, indicating potential volatility and risk for investors.