Is Shantai Indust. overvalued or undervalued?

As of 13 June 2025, the valuation grade for Shantai Industries has moved from fair to expensive. Based on the analysis, the company appears to be overvalued. Key ratios include a PE ratio of 11.35, an EV to EBIT of 13.70, and a ROE of 3.00%. In comparison to peers, K P R Mill Ltd is categorized as very expensive with a PE ratio of 45.8, while Trident is rated fair with a PE ratio of 42.28, highlighting that Shantai's valuation is not justified when compared to its industry counterparts.
Despite a strong one-year stock return of 84.96% compared to the Sensex's 5.61%, the fundamental ratios indicate that Shantai Industries is not positioned favorably in the market. The low ROCE of 1.40% and the high EV to Sales ratio of 0.82 further support the conclusion that the stock is overvalued.