Is Salguti Industri overvalued or undervalued?

As of 26 September 2025, Salguti Industri's valuation grade has moved from attractive to fair, indicating a potential shift in its market perception. The company is currently assessed as overvalued, particularly given its negative PE ratio of -18.92 and a Price to Book Value of 2.09. Additionally, the EV to EBITDA ratio stands at 12.04, which is relatively high compared to its peers.
In comparison to its industry peers, Garware Hi Tech has a PE ratio of 21.48 and an EV to EBITDA of 14.74, categorizing it as expensive, while AGI Greenpac is rated very attractive with a PE of 16.25 and an EV to EBITDA of 9.38. Salguti's financial metrics, including a ROCE of 6.12% and a negative ROE of -2.76%, further support the conclusion that the company is overvalued at its current price of 25.10. Despite a recent positive stock return of 0.4% over the past week compared to a decline in the Sensex, the overall valuation suggests caution for potential investors.