Is VTM overvalued or undervalued?

As of 5 September 2025, the valuation grade for VTM 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. Notable ratios include a PE ratio of 13.69, an EV to EBITDA of 9.37, and a PEG ratio of 0.09, which suggests that the stock is trading at a discount relative to its growth prospects.
In comparison to its peers, VTM's PE ratio is significantly lower than K P R Mill Ltd, which is considered very expensive at 41.13, and Trident, which is rated fair at 33.12. Additionally, Vardhman Textile, another peer, has a PE ratio of 13.82, indicating that VTM is competitively priced within the industry. Despite recent underperformance against the Sensex over the past month and year-to-date, VTM's strong long-term returns of 155.05% over three years and 697.13% over ten years reinforce its attractive valuation.