Is United Textiles overvalued or undervalued?

As of 29 October 2025, the valuation grade for United Textiles has moved from risky to attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued given its current metrics, particularly with a Price to Book Value of 0.42 and an EV to EBITDA ratio of 8.47. Additionally, the ROCE stands at a modest 2.61%, suggesting room for operational improvement.
In comparison to its peers, United Textiles shows a stark contrast with K P R Mill Ltd, which has a PE ratio of 44.68 and is classified as very expensive, while Vardhman Textile, also attractive, has a PE of 15.17. This positions United Textiles favorably within its industry, especially considering its attractive valuation despite the lack of earnings reflected in its PE and PEG ratios of 0.00. The company's recent stock performance over the past five years, yielding a return of 216.74%, further supports the notion of its undervaluation relative to the broader market.