Is Super Fine Knit. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Super Fine Knit has moved from risky to fair. Based on the analysis, the company appears to be undervalued. Key ratios include a PE Ratio of 12.27, an EV to EBITDA of 10.07, and a Price to Book Value of 0.53, indicating that the stock is trading at a significant discount relative to its book value.
In comparison to peers, Super Fine Knit’s valuation metrics are more favorable than K P R Mill Ltd, which has a PE Ratio of 42 and an EV to EBITDA of 27.8, highlighting the latter's overvaluation. Additionally, Vardhman Textile, another peer with a fair valuation, has a PE Ratio of 14.56 and an EV to EBITDA of 10.55, further supporting the notion that Super Fine Knit is positioned attractively within its industry. Despite recent underperformance compared to the Sensex, with a year-to-date return of -26.67% against the Sensex's 4.82%, the company's current valuation suggests potential for recovery and growth.