Is Rain Industries overvalued or undervalued?

As of 2 June 2025, the valuation grade for Rain Industries has moved from fair to attractive, indicating a more favorable assessment of its stock. The company is currently considered undervalued, particularly given its low Price to Book Value of 0.74 and an EV to Sales ratio of 0.71, which suggest that the stock is trading below its intrinsic value. Additionally, the PE Ratio stands at -8.86, reflecting significant challenges in profitability.
In comparison to its peers, Rain Industries shows a stark contrast with PCBL Chemical, which has a PE Ratio of 36.09 and an EV to EBITDA of 15.62, marking it as fairly valued. Goa Carbon, on the other hand, is categorized as risky due to its negative PE Ratio. Despite recent underperformance compared to the Sensex on a year-to-date basis, where Rain Industries has seen a decline of 12.60% against the Sensex's gain of 5.61%, the current valuation metrics suggest that the stock presents a compelling opportunity for investors.