Is Shalimar Wires overvalued or undervalued?

As of 4 July 2025, Shalimar Wires has moved from a fair to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 45.37, an EV to EBITDA of 6.80, and a PEG Ratio of 0.09, indicating strong growth potential relative to its price.
In comparison to its peers, Shalimar Wires has a significantly higher PE Ratio than Vedanta, which stands at 13.18, and is also more expensive than Hindustan Zinc, which has a PE of 18.05. Despite its elevated valuation metrics, the low PEG Ratio suggests that the stock may be undervalued given its growth prospects. Additionally, while Shalimar Wires has underperformed against the Sensex in the short term, its long-term returns of 495.18% over ten years indicate strong historical performance.