Is Precision Metal. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Precision Metal has moved from attractive to fair. This indicates a shift in perception regarding its investment potential, suggesting that the company is currently fairly valued. The key ratios reflect this sentiment, with a PE ratio of 38.38, an EV to EBIT of 28.48, and a Price to Book Value of 0.35, which are relatively high compared to some peers.
In comparison with its industry peers, JSW Steel has a PE ratio of 45.42 and Tata Steel at 44.89, both indicating that Precision Metal is trading at a lower valuation despite its fair grade. Additionally, Jindal Steel, with a PE of 24.44, shows that there are more attractive options in the market. The recent performance of Precision Metal has been poor, with a year-to-date return of -56.68%, significantly underperforming the Sensex's 9.09% return in the same period, reinforcing the notion that the stock may not be an attractive investment at this time.