Is United Textiles overvalued or undervalued?

As of 8 October 2025, the valuation grade for United Textiles has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a Price to Book Value of 0.45, an EV to EBITDA of 8.62, and a ROCE of 2.61%.
In comparison with peers, K P R Mill Ltd is classified as very expensive with a PE ratio of 43.03, while Vardhman Textile is attractive with an EV to EBITDA of 9.82. The low valuation metrics of United Textiles, particularly its zero PE ratio and PEG ratio, suggest that the market may not be fully recognizing its potential. Additionally, while the stock has underperformed compared to the Sensex over the last year, its impressive 5-year return of 187.82% indicates strong long-term growth prospects.