Is S.A.L Steel overvalued or undervalued?

As of 26 June 2025, S.A.L Steel has moved from a fair to an attractive valuation grade. The company is currently considered undervalued. Key ratios include a PE ratio of -64.72, an EV to EBITDA of 11.39, and a ROCE of 7.93%. In comparison, peers such as JSW Steel have a PE ratio of 66.7 and an EV to EBITDA of 14.49, while Tata Steel shows a PE ratio of 52.91 and an EV to EBITDA of 11.19, highlighting S.A.L Steel's relative attractiveness in the market.
Despite recent underperformance with a year-to-date return of -26.33% compared to the Sensex's 7.19%, the company's strong long-term performance, with a 5-year return of 364.78%, suggests potential for recovery. The valuation metrics and peer comparisons indicate that S.A.L Steel presents a compelling investment opportunity at its current price of 17.29.