Is Rathi Steel overvalued or undervalued?
As of June 30, 2025, Rathi Steel is considered overvalued with a PE ratio of 29.60, an EV to EBITDA of 14.08, and a ROCE of 7.18%, lagging behind peers like JSW Steel and Tata Steel, and has a year-to-date return of -23.15% compared to the Sensex's 7.00%.
As of 30 June 2025, Rathi Steel's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as overvalued. Key ratios include a PE ratio of 29.60, an EV to EBITDA of 14.08, and a ROCE of 7.18%. In comparison to its peers, Rathi Steel's PE ratio is significantly lower than JSW Steel's 65.95 and Tata Steel's 52.66, both of which are categorized as fair or attractive. Additionally, while Jindal Steel has a PE ratio of 23.71, it also reflects a more favorable valuation compared to Rathi Steel. Notably, Rathi Steel's recent stock performance has lagged behind the Sensex, with a year-to-date return of -23.15% compared to the Sensex's 7.00%, further reinforcing the perception of overvaluation.
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