Is United Cotfab overvalued or undervalued?

As of 20 October 2025, the valuation grade for United Cotfab has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 13.98, an EV to EBIT of 11.05, and a Price to Book Value of 0.76, which suggest that the company is priced reasonably relative to its earnings and book value.
In comparison to its peers, United Cotfab's PE Ratio of 13.98 is significantly lower than K P R Mill Ltd, which is rated very expensive with a PE of 42.59, and Trident, which is fairly valued with a PE of 32.64. This indicates that United Cotfab may offer a more attractive valuation relative to its peers in the garments and apparel industry. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 47.45% compared to the Sensex's gain of 7.97%, reinforcing the view that the stock may be undervalued in the current market context.