Is Precision Metal. overvalued or undervalued?

As of 21 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 highlight this position, with a PE ratio of 43.74, an EV to EBIT of 31.61, and a Price to Book Value of 0.50. In comparison to peers, JSW Steel and Tata Steel are both rated as fair with PE ratios of 49.39 and 53.72, respectively, which further emphasizes Precision Metal's high valuation relative to its industry.
The company's performance has been underwhelming, with a year-to-date return of -37.51%, contrasting sharply with the Sensex's gain of 6.12% during the same period. Given these factors, Precision Metal appears to be significantly overvalued in the current market environment.