Is Shalimar Wires overvalued or undervalued?

As of 9 July 2025, Shalimar Wires has moved from a fair to an attractive valuation grade. The company appears to be undervalued given its current metrics, with a PE ratio of 45.13, an EV to EBITDA of 6.78, and a PEG ratio of 0.09. In comparison to peers, Hindustan Zinc has a PE of 17.24 and Vedanta has a PE of 12.66, both indicating that Shalimar Wires is trading at a premium relative to these competitors.
Despite its high valuation ratios, the company's low PEG ratio suggests strong growth potential, which may justify its current price. Additionally, while Shalimar Wires has underperformed the Sensex in the short term, its long-term returns over 3, 5, and 10 years significantly outpace the index, reinforcing the attractiveness of its valuation.