Is RSWM Ltd overvalued or undervalued?

As of 7 November 2025, RSWM Ltd has moved from an attractive to a very attractive valuation grade. The company is currently assessed as undervalued, despite its high PE ratio of 88.86 and an EV to EBIT of 96.28. Notably, the Price to Book Value stands at a remarkably low 0.05, indicating significant undervaluation relative to its assets. The PEG ratio of 0.81 further supports the notion that the stock is undervalued given its growth potential.
In comparison to its peers, RSWM Ltd's valuation metrics are strikingly higher than those of K P R Mill Ltd, which has a PE of 43.65, and Trident, with a PE of 32.8. This suggests that while RSWM Ltd is currently trading at a premium, its growth prospects may justify this valuation. Additionally, the company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it has returned -23.75% compared to the Sensex's 4.62%. However, its long-term performance over five years shows a positive return of 152.35%, indicating potential for recovery and growth.