Is Seasons Textiles overvalued or undervalued?

As of 20 June 2025, the valuation grade for Seasons Textiles has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when analyzing its key financial ratios. The PE ratio stands at -14.31, which suggests negative earnings, while the Price to Book Value is notably low at 0.41, indicating that the stock is trading well below its book value. Additionally, the EV to EBITDA ratio is 10.61, reflecting a reasonable valuation compared to its earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Seasons Textiles appears to be in a favorable position. For instance, K P R Mill Ltd is classified as very expensive with a PE ratio of 45.61, while Trident is rated fair with a PE ratio of 40.75. This stark contrast highlights Seasons Textiles' potential for growth and value. Despite recent stock performance lagging behind the Sensex over the past month and year-to-date, the long-term returns of 77.67% over three years and 219.40% over five years suggest a strong underlying growth story that could be further realized as the market corrects its valuation.