Is Sambandam Spg. overvalued or undervalued?

As of 23 October 2025, Sambandam Spg. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of -8.26, an EV to EBITDA of 14.78, and a Price to Book Value of 0.55, indicating significant potential for upside given its low valuation metrics.
In comparison to its peers, Sambandam Spg. stands out with a much lower PE ratio than K P R Mill Ltd, which has a PE of 44.73, and Trident, with a PE of 33.57. While the company has faced challenges reflected in its negative ROE of -9.00% and ROCE of -0.09%, its valuation metrics suggest that it may be a compelling investment opportunity. Notably, despite recent underperformance relative to the Sensex, with a YTD return of -36.79% compared to the Sensex's 8.21%, the attractive valuation presents a potential turnaround scenario for investors.