Is Riddhi Steel overvalued or undervalued?

As of 15 July 2025, Riddhi Steel's valuation grade has moved from very expensive to expensive, indicating a shift towards a more favorable assessment but still suggesting that the stock is not a bargain. The company is currently considered overvalued. Key ratios include a PE ratio of 10.38, an EV to EBIT of 10.53, and a Price to Book Value of 1.38, which are relatively high compared to its peers.
In comparison to its industry peers, Riddhi Steel's PE ratio is significantly lower than that of JSW Steel, which stands at 67.15, and Tata Steel, which has a PE of 52.43. This suggests that while Riddhi Steel may be overvalued, it is not as inflated as some of its competitors. Additionally, the company has shown strong historical returns, with a 1-year return of 63.79% compared to the Sensex's 2.36%, highlighting its past performance despite current valuation concerns.