Is Steelco Gujarat overvalued or undervalued?

As of 13 October 2025, Steelco Gujarat's valuation grade has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company appears to be overvalued given its negative ratios, including a PE ratio of -0.94, an EV to EBITDA of -4.23, and an EV to Sales ratio of 5.62. These figures suggest that the company is struggling financially, particularly with negative capital employed and book value.
In comparison to its peers, Steelco Gujarat's valuation metrics are starkly unfavorable. For instance, JSW Steel and Tata Steel, both rated as fair, have PE ratios of 55.51 and 44.49 respectively, highlighting a stark contrast in financial health. The company’s performance is further underscored by its remarkable stock return of 839.20% over the past week, significantly outpacing the Sensex's 0.66% return, which may mislead investors regarding its underlying value. Overall, Steelco Gujarat is overvalued in the current market context.