Is Sambandam Spg. overvalued or undervalued?

As of 29 August 2025, the valuation grade for Sambandam Spg. has moved from very attractive to attractive. The company is currently considered undervalued, with a PE ratio of -9.17, a price to book value of 0.61, and an EV to EBITDA ratio of 15.25. These ratios indicate that the company is trading at a significant discount relative to its earnings potential, despite the negative profitability metrics.
In comparison to its peers, Sambandam Spg. shows a stark contrast with K P R Mill Ltd, which has a PE ratio of 40.98, and Trident, which has an EV to EBITDA of 15.27. This suggests that Sambandam is undervalued relative to these companies in the garments and apparel sector. Notably, while the stock has underperformed the Sensex year-to-date with a return of -29.79% compared to the Sensex's 2.14%, it has shown a remarkable 132.08% return over the past five years, indicating potential for recovery and growth.