Is W S Inds. overvalued or undervalued?

As of 21 July 2025, W S Industries has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, primarily due to its low PE ratio of -32.43, which stands in stark contrast to peers such as ABB with a PE ratio of 65.47 and Siemens Energy with a PE ratio of 110.95. Additionally, W S Industries has an EV to EBITDA ratio of 57.84, while its EV to Sales ratio is 2.61, indicating a significant discrepancy when compared to industry standards.
Despite the attractive valuation, W S Industries has shown a negative return on equity (ROE) of -8.87% and a return on capital employed (ROCE) of only 3.48%. This performance raises concerns, especially as the company has underperformed against the Sensex over the past year, with a stock return of -44.75% compared to the Sensex's 1.98%. Overall, the valuation metrics suggest that W S Industries is undervalued relative to its peers, but its financial performance warrants caution.