Is Shalimar Wires overvalued or undervalued?

As of 22 September 2025, the valuation grade for Shalimar Wires has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued with a PE ratio of 41.07, an EV to EBITDA of 6.74, and a PEG ratio of 0.09, which suggests strong growth potential relative to its current price.
In comparison to its peers, Shalimar Wires' PE ratio is significantly higher than Hindustan Zinc's 18.84, which is considered very expensive, and Vedanta's 13.59, which is categorized as very attractive. This positions Shalimar Wires favorably in terms of growth expectations despite its higher valuation metrics. Additionally, while the stock has underperformed the Sensex over the past year with a return of -29.94% compared to the Sensex's -2.82%, its long-term performance over five years shows a remarkable return of 423.50%. Overall, Shalimar Wires is currently undervalued in the context of its growth prospects and peer comparisons.