Is Active Clothing overvalued or undervalued?

As of 9 June 2025, Active Clothing's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 19.34, an EV to EBITDA of 10.91, and a PEG ratio of 0.17, which suggests that the stock is reasonably priced relative to its growth potential.
When compared to peers, K P R Mill Ltd is considered very expensive with a PE ratio of 46.91, while Trident is also rated fair with a PE of 42.68. This positions Active Clothing competitively within the garments and apparel industry. Notably, the company has outperformed the Sensex in various timeframes, including a 1-year stock return of 27.47% compared to the Sensex's 7.50%, reinforcing its strong market performance despite the recent grade change.