Is Sambhv Steel overvalued or undervalued?

Sep 01 2025 08:11 AM IST
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As of August 29, 2025, Sambhv Steel is considered very expensive and overvalued with a PE ratio of 61.18, significantly higher than its peers like JSW Steel and Tata Steel, and has underperformed the Sensex with a recent return of -6.41%.
As of 29 August 2025, Sambhv Steel's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a PE ratio of 61.18, a Price to Book Value of 7.16, and an EV to EBITDA of 26.32. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Sambhv Steel's valuation stands out unfavorably. For instance, JSW Steel, which is rated fair, has a PE ratio of 49.05, while Tata Steel, rated attractive, has a PE of 39.73. This stark contrast highlights Sambhv Steel's overvaluation in the current market. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -6.41% compared to the Sensex's -1.84%, reinforcing the notion that the stock may not be a sound investment at its current price.
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