Is Sagardeep Alloys overvalued or undervalued?

As of 14 August 2025, Sagardeep Alloys has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its current metrics. The PE ratio stands at 24.24, while the EV to EBITDA ratio is 28.64, and the PEG ratio is notably low at 0.18, indicating potential overvaluation relative to growth expectations.
In comparison to its peers, Sagardeep Alloys has a higher PE ratio than Hindustan Zinc, which is at 17.49, and Vedanta, which is at 12.75, both of which are considered very attractive. Additionally, the EV to EBITDA ratio of 28.64 is significantly higher than Vedanta's 5.26, further suggesting that Sagardeep is overvalued in its sector. While the stock has outperformed the Sensex over the past week with a return of 6.93%, its longer-term performance has lagged, with a 5-year return of -63.27% compared to the Sensex's 120.35%.