Is Usha Martin overvalued or undervalued?

As of 17 October 2025, Usha Martin's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its key financial ratios, which include a PE ratio of 34.41, a Price to Book Value of 5.05, and an EV to EBITDA of 23.91. These figures suggest that Usha Martin is trading at a premium compared to its peers.
In comparison to its industry peers, Usha Martin's PE ratio is significantly higher than that of Tata Steel, which stands at 44.31, and Jindal Steel, with a PE of 24.5, both of which are categorized as fairly valued. Additionally, Usha Martin's PEG ratio of 0.00 indicates a lack of growth expectations, further supporting the view that it is overvalued in the current market. Despite a strong performance relative to the Sensex over the past three years, with a return of 237.16% compared to 43.73% for the index, the current valuation does not justify the premium pricing of the stock.