Is Welspun Corp overvalued or undervalued?

As of 18 September 2025, Welspun Corp's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 14.47, an EV to EBITDA of 12.57, and a PEG ratio of 0.40, which suggests that the stock may still offer growth potential relative to its price.
When compared to peers, Welspun Corp's valuation stands out against companies like Tata Steel, which has a PE ratio of 44.24 and is rated attractive, and Jindal Steel, rated fair with a PE of 25.46. This comparison highlights that while Welspun Corp is fairly valued, it is significantly less expensive than some of its peers. Additionally, the company's strong return on equity (ROE) of 20.47% and return on capital employed (ROCE) of 19.47% further support its valuation stance. Notably, Welspun Corp has outperformed the Sensex with a year-to-date return of 10.32% compared to the Sensex's 6.24%, reinforcing its competitive position in the market.