Is SRU Steels overvalued or undervalued?

As of 7 November 2025, the valuation grade for SRU Steels has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 32.91, an EV to EBIT of 19.35, and an EV to EBITDA of 18.55. In comparison to peers, JSW Steel is considered expensive with a PE ratio of 46.73, while Tata Steel is also fairly valued with a PE of 46.67, highlighting that SRU Steels is more competitively priced within its industry.
Despite the fair valuation, SRU Steels has shown a significant decline in stock performance, with a year-to-date return of -31.29%, contrasting sharply with the Sensex's positive return of 6.50% over the same period. This underperformance may suggest that the market has not fully recognized the company's value relative to its peers, particularly given its low PEG ratio of 0.14, indicating potential for growth.