Is VTM overvalued or undervalued?

As of 26 September 2025, the valuation grade for VTM has moved from fair to attractive, indicating a more favorable outlook for the company. Based on the analysis, VTM appears to be undervalued. The company has a PE ratio of 14.04, an EV to EBITDA of 9.60, and a PEG ratio of 0.10, which are competitive compared to its peers. In comparison, K P R Mill Ltd is considered very expensive with a PE ratio of 44.44, while Vardhman Textile, which is rated fair, has a PE ratio of 14.17. This suggests that VTM is positioned well within its industry, especially given its attractive valuation metrics. Additionally, despite recent stock performance lagging behind the Sensex in the short term, VTM has shown impressive long-term returns, with a 1-year return of 112.63% compared to the Sensex's -6.30%.