Is Steel City Sec. overvalued or undervalued?

As of 9 October 2025, the valuation grade for Steel City Sec. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE Ratio of 8.84, an EV to EBITDA of 4.93, and a PEG Ratio of 0.40, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Steel City Sec. stands out with a much lower PE Ratio than Bajaj Finance, which is at 36.57, and a more favorable EV to EBITDA compared to Life Insurance at 9.05. The company's ROCE of 25.71% and a dividend yield of 4.02% further enhance its attractiveness. Despite recent underperformance against the Sensex over the past month and year-to-date, the long-term returns of 66.28% over three years and 212.46% over five years indicate strong growth potential, reinforcing the notion that Steel City Sec. is undervalued in the current market.