Is SRU Steels overvalued or undervalued?

As of 7 November 2025, SRU Steels has moved from an attractive to a fair valuation grade. 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 its peers, JSW Steel is considered expensive with a PE ratio of 46.73, while Tata Steel is also fairly valued with a PE ratio of 46.67.
Despite its fair valuation, SRU Steels shows concerning financial metrics, including a negative ROCE of -0.61% and a low ROE of 1.72%. The stock's performance has been underwhelming, with a year-to-date return of -31.29%, significantly lagging behind the Sensex's 6.50% return. This suggests that while the company is fairly valued, its underlying financial health and market performance may warrant caution.