Is Riddhi Steel overvalued or undervalued?

As of 22 August 2025, Riddhi Steel's valuation grade has moved from very expensive to expensive, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 9.49, an EV to EBITDA of 8.77, and a ROE of 13.26%.
In comparison to its peers, Riddhi Steel's PE ratio is significantly lower than that of JSW Steel, which stands at 50.31, and Tata Steel, which has a PE ratio of 40.78. This suggests that while Riddhi Steel may be priced higher than its intrinsic value, it still lags behind its more expensive competitors in terms of growth potential. Despite a recent stock return of 10.24% over the past week, the year-to-date performance shows a decline of 31.97%, further reinforcing the notion of overvaluation in the current market context.