Is SRU Steels overvalued or undervalued?

As of 5 September 2025, the valuation grade for SRU Steels has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 29.97, an EV to EBITDA ratio of 21.03, and a PEG ratio of 0.13, suggesting that the stock may be undervalued relative to its growth prospects.
In comparison to its peers, SRU Steels has a PE ratio that is significantly lower than that of JSW Steel at 51.25 and Tata Steel at 43.15, both of which are considered attractive. Additionally, while the ROE for SRU Steels stands at 7.83%, it is lower than Jindal Steel's ROE of 25.12%. Despite a challenging year-to-date return of -36.69%, which contrasts sharply with the Sensex's positive return of 3.29%, the current valuation metrics suggest that SRU Steels presents a compelling investment opportunity within its sector.