Is Scan Steels overvalued or undervalued?

As of 3 November 2025, Scan Steels has moved from an attractive to a very attractive valuation grade, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 12.72, an EV to EBITDA of 6.59, and a Price to Book Value of 0.56. These ratios suggest that Scan Steels is trading at a discount compared to its peers.
In comparison to its industry peers, Scan Steels stands out with a much lower PE ratio than JSW Steel, which has a PE of 47.58, and Tata Steel, which has a PE of 46.98. Additionally, the EV to EBITDA ratio of 6.59 for Scan Steels is significantly lower than that of JSW Steel's 13.93, reinforcing the notion of undervaluation. Despite recent stock performance lagging behind the Sensex over the past year, the fundamental metrics indicate that Scan Steels presents a compelling investment opportunity at its current price of 40.35.