Is Venus Pipes overvalued or undervalued?

As of 1 September 2025, the valuation grade for Venus Pipes has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 28.77, an EV to EBITDA of 16.66, and a Price to Book Value of 4.88, which suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Venus Pipes' PE Ratio is significantly higher than that of Jindal Steel, which has a PE of 23.45, and SAIL, with a PE of 16.43, both of which are classified as attractive. This disparity highlights the overvaluation of Venus Pipes in the current market context. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -16.11% compared to the Sensex's positive return of 2.85%, further reinforcing the notion that the stock may be overvalued.