Is Shalimar Wires overvalued or undervalued?

As of 18 September 2025, Shalimar Wires has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE ratio of 41.75, an EV to EBITDA of 6.80, and a ROE of 5.85%. In comparison, peers such as Vedanta, which is rated very attractive, has a PE ratio of 13.48 and an EV to EBITDA of 5.49, indicating a significant valuation gap.
Additionally, Hindustan Zinc, classified as very expensive, shows a PE ratio of 18.66, further highlighting Shalimar Wires' elevated valuation relative to its peers. The company's stock has underperformed with a year-to-date return of -8.23%, contrasting sharply with the Sensex's gain of 6.24% during the same period. Overall, these factors suggest that Shalimar Wires is overvalued in its current market position.