Is RCF overvalued or undervalued?

As of 25 September 2025, the valuation grade for RCF has moved from fair to attractive, indicating a positive shift in its market perception. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE ratio of 29.02, an EV to EBITDA of 13.86, and a PEG ratio of 0.36, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, RCF's valuation stands out against Coromandel International, which has a PE ratio of 33.22 and is categorized as very expensive, and Chambal Fertilizers, which is also attractive but has a significantly lower PE ratio of 12.09. This peer analysis reinforces RCF's position as an attractive investment opportunity. Additionally, while RCF has underperformed the Sensex in the short term, its long-term returns over the past five years have significantly outpaced the index, further supporting the notion that it is currently undervalued.