Is Rathi Steel overvalued or undervalued?

As of 31 October 2025, Rathi Steel's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 27.98, an EV to EBITDA of 12.31, and a PEG ratio of 0.36, suggesting that it is priced favorably compared to its growth potential.
In comparison to its peers, Rathi Steel's valuation metrics stand out; for instance, JSW Steel is deemed expensive with a PE ratio of 48.13, while Tata Steel is rated fair at a PE of 47.06. This positions Rathi Steel as a more attractive investment option within the industry. Notably, the company has underperformed the Sensex over the past year, with a stock return of -46.31% compared to the Sensex's 5.73%, but its recent performance over the past week shows a rebound with a return of 10%.