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 positive shift in its valuation outlook. The company is currently assessed as undervalued based on its financial metrics. Key ratios include a PE ratio of 14.42, a Price to Book Value of 0.33, and an EV to EBITDA of 20.35, which suggest that the stock is trading at a significant discount relative to its earnings and book value.
In comparison to peers, Rajapalayam Mill's PE ratio of 14.42 is markedly lower than K P R Mill Ltd, which is very expensive at 43.91, and Trident, which is fairly valued at 32.4. The PEG ratio of 0.01 further emphasizes the company's undervaluation compared to the industry standards. Notably, while Rajapalayam Mill has underperformed the Sensex in the short term, its long-term performance over five years shows a gain of 43.39%, which is still below the Sensex's 93.78% return, reinforcing the potential for upside as the market recognizes its value.