Is Shanti Spintex overvalued or undervalued?

As of 5 September 2025, the valuation grade for Shanti Spintex has moved from fair to attractive, indicating a more favorable outlook for the company. Based on the analysis, Shanti Spintex appears to be undervalued. The company's PE ratio stands at 11.30, while its EV to EBITDA ratio is 6.69, both of which are significantly lower than peers such as K P R Mill Ltd with a PE ratio of 41.13 and Trident with an EV to EBITDA of 15.76.
In comparison to its industry peers, Shanti Spintex's ROCE of 14.24% and ROE of 11.78% suggest solid operational efficiency and profitability. The company’s valuation metrics, particularly the PEG ratio of 0.00, further reinforce the undervaluation narrative. Despite a recent decline in stock price, which has underperformed the Sensex over the past year, the overall fundamentals and peer comparisons indicate that Shanti Spintex is positioned favorably in the market.