Is VST Industries overvalued or undervalued?

As of 18 November 2025, VST Industries has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company is currently assessed as undervalued, with a PE ratio of 19.38, an EV to EBITDA ratio of 13.78, and a robust ROCE of 24.34%. In comparison to its peers, ITC is considered expensive with a PE ratio of 21.39, while NTC Industries is very attractive with a lower PE of 14.11.
Despite the attractive valuation, VST Industries has faced challenges in stock performance, with a year-to-date return of -24.40%, significantly lagging behind the Sensex's 8.36% return. This discrepancy suggests that while the company may be undervalued based on its financial metrics, market sentiment has not yet aligned with its intrinsic value.