Is R R Kabel overvalued or undervalued?

As of 9 July 2025, R R Kabel's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued based on its financial metrics, with a PE ratio of 48.60, an EV to EBITDA of 31.20, and a ROCE of 19.19%. In comparison to its peers, R R Kabel's PE ratio is slightly lower than Polycab India's 49.95 and KEI Industries' 50.76, both of which are categorized as expensive.
Despite the attractive valuation, R R Kabel has faced significant stock underperformance, with a year-to-date return of -7.05% compared to a 6.91% return for the Sensex. This divergence highlights a potential market mispricing, suggesting that R R Kabel could be a compelling investment opportunity given its strong operational metrics relative to its peers.