Is Surya Roshni overvalued or undervalued?

As of 27 May 2025, the valuation grade for Surya Roshni has moved from fair to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 21.10, an EV to EBITDA of 12.15, and a PEG ratio of 3.98, which indicate that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Surya Roshni's PE ratio is significantly higher than that of Tata Steel, which has a PE of 51.92 and is rated as attractive, and Jindal Steel, which has a PE of 24.29 and is also rated attractive. This suggests that Surya Roshni's valuation does not align favorably with its industry counterparts. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 14.50% compared to the Sensex's 5.64%, but this does not mitigate the overall conclusion that the stock is currently overvalued.