Is Vardhman Textile overvalued or undervalued?

As of 3 October 2025, Vardhman Textile's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 13.84, an EV to EBITDA of 10.06, and a PEG ratio of 0.86, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Vardhman Textile stands out favorably against K P R Mill Ltd, which has a significantly higher PE ratio of 44.24, and Trident, which has a PE of 33.41. Additionally, Welspun Living, another attractive peer, has a PE of 21.08, further highlighting Vardhman Textile's relative undervaluation. Despite recent underperformance against the Sensex, with a year-to-date return of -19.90% compared to the Sensex's 3.93%, the company's fundamentals suggest a strong potential for recovery and growth.