Is Rathi Steel overvalued or undervalued?

As of 31 October 2025, Rathi Steel has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company appears to be undervalued, particularly when considering its PE ratio of 27.98, EV to EBITDA of 12.31, and a PEG ratio of 0.36, which suggests strong growth potential relative to its price.
In comparison to its peers, Rathi Steel's valuation stands out; for instance, JSW Steel is deemed expensive with a PE ratio of 48.13, while Tata Steel is considered fair with a PE of 47.06. This positions Rathi Steel favorably within the industry, especially given its lower valuation metrics. Additionally, despite recent underperformance relative to the Sensex over the past year, the company has shown resilience with a notable 10% return over the last week, contrasting with the Sensex's slight decline.