Is Rathi Steel overvalued or undervalued?

As of 26 June 2025, Rathi Steel's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a PE ratio of 29.21, an EV to EBITDA of 13.92, and a ROCE of 7.18%. In comparison to peers, Rathi Steel's PE ratio is notably lower than that of JSW Steel at 66.7 and Tata Steel at 52.91, both of which are rated fair. Additionally, Jindal Steel, rated attractive, has a PE of 24.1, further highlighting Rathi Steel's relative undervaluation. Despite recent stock performance showing a decline of 36.61% over the past year, its strong valuation metrics suggest that it may present a compelling investment opportunity in the current market landscape.