Is Shalimar Wires overvalued or undervalued?

As of 19 August 2025, Shalimar Wires has moved from a fair to an attractive valuation grade, indicating a positive shift in its market positioning. The company is currently considered undervalued, especially given its PE ratio of 40.40, which is significantly higher than peers like Hindustan Zinc at 17.58 and Vedanta at 13.34. Additionally, the EV to EBITDA ratio stands at 6.69, which is more favorable compared to Hindustan Copper's 30.89, further supporting the undervaluation thesis.
Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 11.21% compared to the Sensex's gain of 4.49%, the company's PEG ratio of 0.09 suggests strong growth potential relative to its current price. With a ROCE of 4.70% and ROE of 5.85%, Shalimar Wires shows promising returns on capital and equity, reinforcing the view that it is undervalued in the current market landscape.