Is Steel City Sec. overvalued or undervalued?

As of 8 October 2025, the valuation grade for Steel City Sec. has moved from very attractive to attractive. The company is currently considered undervalued, with a PE ratio of 8.98, an EV to EBITDA ratio of 5.05, and a PEG ratio of 0.41, all of which suggest a favorable valuation compared to its peers.
In comparison, Bajaj Finance is categorized as very expensive with a PE ratio of 36.53, while Life Insurance is rated very attractive with a PE of 11.6. Steel City Sec.'s strong ROCE of 25.71% and a dividend yield of 3.96% further support its undervaluation thesis. Despite recent underperformance relative to the Sensex, particularly year-to-date with a return of -13.59% compared to the Sensex's 5.93%, the long-term performance remains robust with a 5-year return of 216.71%.