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 perceived value. The company is currently considered undervalued, particularly when analyzing key financial ratios such as the PE Ratio of 14.42, Price to Book Value of 0.33, and a PEG Ratio of 0.01. These figures suggest that the stock is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, Rajapalayam Mill's valuation metrics stand out favorably. For instance, K P R Mill Ltd is deemed very expensive with a PE Ratio of 43.91, while Trident has a fair valuation with a PE Ratio of 32.4. This stark contrast highlights Rajapalayam Mill's attractive valuation relative to its industry peers. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -24.79% compared to the Sensex's 8.22%, reinforcing the notion that the stock may be undervalued in the current market context.