Is Riddhi Steel overvalued or undervalued?

As of 26 September 2025, Riddhi Steel's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued. Key ratios include a PE ratio of 9.28, an EV to EBITDA of 8.79, and a ROE of 12.22%.
When compared to peers, Riddhi Steel's valuation stands out as very expensive, especially against JSW Steel, which has a PE of 54, and Tata Steel, which is rated attractive with a PE of 43.07. The company's recent stock performance has been underwhelming, with a year-to-date return of -33.44%, contrasting sharply with the Sensex's positive return of 2.93% during the same period, further reinforcing the notion of overvaluation.