Is Sacheta Metals overvalued or undervalued?

As of 29 October 2025, Sacheta Metals has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued based on its financial ratios. Notable ratios include a PE ratio of 27.66, an EV to EBITDA of 12.58, and a PEG ratio of 2.93, which are significantly higher than many of its peers. For instance, Hindalco Industries has a PE ratio of 11.11 and an EV to EBITDA of 7.29, while National Aluminium shows a PE of 7.64 and an EV to EBITDA of 4.67, indicating that Sacheta Metals is trading at a premium compared to these competitors.
The company's financial performance metrics, such as a ROCE of 5.95% and a ROE of 4.18%, further suggest that it is not generating sufficient returns to justify its current valuation. Additionally, the recent stock performance has been underwhelming, with a year-to-date return of -14.95%, contrasting sharply with the Sensex's gain of 8.78% over the same period. This combination of high valuation ratios and poor relative performance reinforces the conclusion that Sacheta Metals is overvalued in the current market environment.