Is Seasons Textiles overvalued or undervalued?

As of 6 June 2025, Seasons Textiles has moved from an attractive to a very attractive valuation grade. The company appears to be undervalued, particularly when considering its current PE ratio of -14.66, a price-to-book value of 0.42, and an EV to EBITDA ratio of 10.72. These metrics suggest that the market may not be fully recognizing the potential value of the company, especially in comparison to its peers.
In the peer comparison, K P R Mill Ltd is categorized as very expensive with a PE ratio of 47.51, while Trident is rated fair with a PE of 42.6. This stark contrast highlights Seasons Textiles' undervaluation relative to its competitors. Additionally, the company's stock has shown strong performance over the long term, with a 5-year return of 241.71%, significantly outpacing the Sensex's 143.00% return, reinforcing the notion that the stock may be undervalued in the current market.