Is Seasons Textiles overvalued or undervalued?

As of 20 June 2025, Seasons Textiles has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of -14.31, a Price to Book Value of 0.41, and an EV to EBITDA ratio of 10.61. These figures suggest that the market may not be fully recognizing the potential of the company, especially when compared to peers like K P R Mill Ltd, which is very expensive with a PE ratio of 45.61, and Trident, which is fairly valued with a PE ratio of 40.75.
Despite recent stock performance showing a decline of 9.00% year-to-date compared to a 5.46% increase in the Sensex, the long-term outlook remains strong, with a remarkable 456.85% return over the past decade. This indicates that while the current market sentiment may be negative, the fundamental value of Seasons Textiles suggests it is a compelling investment opportunity at this time.