Is Silky Overseas overvalued or undervalued?

As of 16 September 2025, the valuation grade for Silky Overseas has moved from risky to does not qualify, indicating a significant shift in its financial standing. The company appears to be undervalued based on its current metrics, with a PE ratio of 7.12, an EV to EBITDA of 5.98, and a ROE of 36.60%. These figures suggest that Silky Overseas is trading at a discount compared to its peers.
In comparison to its industry, K P R Mill Ltd has a PE ratio of 45, while Vardhman Textile stands at 14.87, highlighting that Silky Overseas is significantly cheaper than these competitors. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -3.36% compared to the Sensex's 1.49% gain. Overall, the valuation metrics and peer comparisons indicate that Silky Overseas is undervalued in the current market environment.