Is Sangam India overvalued or undervalued?

As of 8 October 2025, the valuation grade for Sangam India has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 81.43, an EV to EBITDA of 12.74, and a ROCE of 6.46%. In comparison with its peers, K P R Mill Ltd has a PE ratio of 43.03 and is rated very expensive, while Vardhman Textile, also rated attractive, has a significantly lower PE ratio of 13.5. This suggests that Sangam India, despite its high PE ratio, may offer better growth prospects relative to its valuation. Additionally, while the stock has underperformed the Sensex in the short term, it has shown substantial growth over the past five years, with a return of 670.20% compared to the Sensex's 103.50%.