Is Usha Martin overvalued or undervalued?

As of 7 November 2025, Usha Martin's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as reflected by its high PE ratio of 35.28, a Price to Book Value of 5.18, and an EV to EBITDA of 24.51. These ratios suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Usha Martin's valuation stands out, particularly against JSW Steel, which has a PE ratio of 46.73 and an EV to EBITDA of 13.74, and Tata Steel, with a PE of 46.67 and an EV to EBITDA of 11.88. While Usha Martin has shown strong returns, outperforming the Sensex with a year-to-date return of 24.55% compared to the Sensex's 6.50%, the current valuation metrics indicate that investors may be paying too much for future growth potential.