Is Surani Steel Tub overvalued or undervalued?

As of 19 September 2025, the valuation grade for Surani Steel Tub has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting high valuation metrics. The company appears to be overvalued based on its current PE ratio of 44.37, an EV to EBITDA of 114.38, and a ROE of 2.68%. These figures suggest that investors are paying a premium for the stock relative to its earnings and book value.
When compared to peers, Surani Steel Tub's valuation stands out. For instance, Tata Steel, which is rated as attractive, has a PE ratio of 44.17 and a significantly lower EV to EBITDA of 11.41. In contrast, JSW Steel, rated as fair, has a PE ratio of 53.69, but its valuation metrics still reflect a more favorable investment proposition than Surani Steel Tub. Furthermore, the company's recent stock performance has been poor, with a year-to-date decline of 50.72%, contrasting sharply with the Sensex's gain of 7.11% over the same period, reinforcing the notion that Surani Steel Tub is currently overvalued.