Is Silky Overseas overvalued or undervalued?

As of 28 August 2025, the valuation grade for Silky Overseas has moved from does not qualify to risky. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE ratio of 9.97, an EV to EBIT of 7.89, and an ROE of 42.67%.
In comparison to peers, Silky Overseas has a lower PE ratio than K P R Mill Ltd, which is at 40.73 and classified as very expensive, and Swan Energy, which has a PE of 22.73 and is also considered risky. Notably, Silky's PEG ratio is 0.00, indicating potential for growth at a low price. While the stock has shown a 13.11% return over the past month compared to a -0.73% return for the Sensex, this reinforces the notion that the company may be undervalued in the current market context.