Is Vardhman Special overvalued or undervalued?

As of 27 October 2025, the valuation grade for Vardhman Special has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 34.82, an EV to EBIT of 30.25, and an EV to EBITDA of 22.73, which are notably high compared to its peers.
In comparison, JSW Steel and Tata Steel, both classified as fairly valued, have PE ratios of 45.78 and 45.43, respectively, while Vardhman Special's PEG ratio stands at an unusual 0.00, suggesting potential issues in growth expectations. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 37.24% compared to the Sensex's 8.50%, yet the elevated valuation metrics indicate that the stock may not be sustainable at these levels.