Is Swastik Pipe overvalued or undervalued?

As of 26 August 2025, the valuation grade for Swastik Pipe has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of -10.46, a price-to-book value of 0.35, and an EV to EBITDA ratio of 9.38. Notably, its return on equity (ROE) is at -3.38%, which raises concerns about profitability.
In comparison to its peers, Swastik Pipe's valuation metrics are significantly lower than those of Tata Steel, which has a PE ratio of 39.87 and an EV to EBITDA of 10.61, and Jindal Steel, with a PE of 23.68 and an EV to EBITDA of 11.58. These comparisons suggest that while Swastik Pipe is fairly valued, it may be lagging behind its competitors in terms of financial performance and market perception. Additionally, the company's stock has underperformed significantly year-to-date, down 39.25%, while the Sensex has gained 4.51%, further emphasizing the challenges it faces in the current market environment.