Is Rathi Steel overvalued or undervalued?

As of 30 October 2025, Rathi Steel's valuation grade has moved from attractive to fair, indicating a shift in its market position. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 28.81, an EV to EBITDA of 12.63, and a ROCE of 7.18%.
When compared to peers, Rathi Steel's valuation stands out against JSW Steel, which is considered expensive with a PE of 48.11, and Tata Steel, which is also fairly valued with a PE of 47.42. Notably, Rathi Steel has a PEG ratio of 0.37, suggesting potential growth at a reasonable price relative to its earnings growth. While the stock has underperformed year-to-date with a return of -31.66% compared to the Sensex's 8.02%, its recent performance over the last month shows a recovery with a return of 19.7%.