Is Scan Steels overvalued or undervalued?

As of 6 October 2025, the valuation grade for Scan Steels has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE ratio of 13.66, an EV to EBITDA ratio of 7.20, and a Price to Book Value of 0.57, all of which suggest that the stock is trading at a discount compared to its earnings and assets.
In comparison to its peers, Scan Steels stands out with a much lower PE ratio than JSW Steel at 55.4 and Tata Steel at 43.72, both of which are rated as fair. Additionally, its EV to EBITDA ratio of 7.20 is more favorable than Jindal Steel's 12.44, reinforcing the notion that Scan Steels is undervalued relative to its industry counterparts. Despite a challenging year with a stock return of -41.42%, the recent performance over the last month shows a positive return of 16.98%, which contrasts sharply with the Sensex return of 1.34%, further emphasizing the potential upside for investors.