Is Riddhi Steel overvalued or undervalued?

As of 28 August 2025, Riddhi Steel's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 9.96, an EV to EBITDA of 8.93, and a PEG ratio of 0.17, which suggests that the stock is priced higher relative to its earnings growth potential compared to its peers.
In comparison to its industry peers, Riddhi Steel's valuation stands out unfavorably. For instance, JSW Steel, which is rated fair, has a significantly higher PE ratio of 49.49, while Tata Steel, rated attractive, has a PE of 39.5. This stark contrast highlights that Riddhi Steel is not only overvalued but also lacks the growth prospects seen in its competitors. Additionally, while Riddhi Steel has shown strong returns over the past three years at 203.53%, its year-to-date performance is down 28.57%, further emphasizing the current overvaluation relative to market expectations.