Is Rajapalayam Mill overvalued or undervalued?

As of 14 November 2025, the valuation grade for Rajapalayam Mill has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 14.42, a Price to Book Value of 0.33, and an EV to EBITDA ratio of 20.35. These ratios suggest that the stock is trading at a lower valuation compared to its earnings and book value.
In comparison to its peers, Rajapalayam Mill's valuation stands out favorably; for instance, K P R Mill Ltd is deemed very expensive with a PE ratio of 43.91, while Trident is rated fair with a PE of 32.4. Additionally, the PEG ratio for Rajapalayam Mill is remarkably low at 0.01, further supporting its undervalued status. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -24.79% compared to the Sensex's 8.22%, the fundamental metrics indicate that Rajapalayam Mill presents a compelling investment opportunity.