Is United Cotfab overvalued or undervalued?

As of 1 October 2025, the valuation grade for United Cotfab has moved from expensive to fair. This indicates a more favorable assessment of the company's value, suggesting it is fairly valued at present. The company's PE ratio stands at 15.47, while its EV to EBITDA ratio is 8.08, and the Price to Book Value is 0.84, which are competitive figures in the context of its peers.
In comparison to its industry peers, K P R Mill Ltd is deemed very expensive with a PE ratio of 43.71, while Vardhman Textile, which is also rated fair, has a PE ratio of 13.96. This positions United Cotfab in a relatively advantageous light, suggesting it is undervalued compared to its more expensive counterparts. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -41.83%, contrasting sharply with the Sensex's positive return of 3.64% during the same period, reinforcing the notion that the stock may be undervalued.