Is Scoda Tubes overvalued or undervalued?

As of 7 November 2025, Scoda Tubes has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by a PE ratio of 31.12, a Price to Book Value of 6.57, and an EV to EBITDA of 14.79. In comparison to its peers, JSW Steel has a significantly higher PE ratio of 46.73 and Tata Steel, which is rated as fair, has a PE of 46.67, highlighting that Scoda Tubes is trading at a premium despite its expensive valuation status.
The company's return metrics also reflect its overvaluation, with a ROCE of 18.92% and ROE of 21.11%, which are respectable but do not justify the high multiples. Additionally, while Scoda Tubes has seen a 3.45% return over the past week, this is in stark contrast to its longer-term performance relative to the Sensex, which has outperformed in the 1M and YTD periods. Overall, the current valuation suggests that investors may want to exercise caution before entering or expanding their positions in Scoda Tubes.