Is Riddhi Corporate overvalued or undervalued?

As of 5 December 2023, Riddhi Corporate's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its strong financial ratios, including a PE ratio of 5.25, an EV to EBITDA of 5.68, and a PEG ratio of 0.03, which suggests that the stock is trading at a low price relative to its earnings growth potential.
In comparison to its peers, Riddhi Corporate's PE ratio is notably lower than the industry average, with competitors showing higher valuations such as a peer with a PE of 5.68. Additionally, the company's ROE stands at an impressive 22.91%, further supporting its undervaluation narrative. Despite recent underperformance against the Sensex, with a YTD return of -17.82% compared to the Sensex's 5.61%, the strong fundamentals suggest that Riddhi Corporate presents a compelling investment opportunity at its current price of 59.50.