Is Sanathan Textile overvalued or undervalued?

As of 22 May 2025, Sanathan Textile's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued, with a PE ratio of 22.60, an EV to EBIT of 18.28, and a ROCE of 15.20%. In comparison to its peers, K.P.R. Mill Ltd. is considered very expensive with a PE ratio of 47.51, while Welspun India Ltd. is also attractive with a lower PE of 20.88, highlighting Sanathan Textile's relative value in the market.
The company's financial metrics suggest it is well-positioned within the garments and apparel industry, especially with a PEG ratio of 0.00, indicating potential for growth without the corresponding high valuation. Recent stock performance shows a return of 25.59% year-to-date, significantly outperforming the Sensex's 5.55%, reinforcing the notion that Sanathan Textile is a compelling investment opportunity in its sector.