Is VST Industries overvalued or undervalued?

As of 31 October 2025, VST Industries has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics, which include a PE ratio of 20.02, an EV to EBITDA of 6.37, and a dividend yield of 3.82%. In comparison to its peers, ITC is considered expensive with a PE ratio of 22.15, while NTC Industries is very attractive with a PE of 16.89.
Despite the fair valuation, VST Industries has shown underperformance relative to the Sensex, with a year-to-date return of -21.93% compared to the Sensex's gain of 7.42%. This underperformance, alongside the low ROE of 1.75% and ROCE of 2.43%, suggests that while the stock is fairly valued, there may be underlying concerns that could affect future performance.