Is Amkay Products overvalued or undervalued?

As of 28 August 2025, the valuation grade for Amkay Products has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE ratio of 14.12, an EV to EBITDA of 12.72, and a ROE of 33.40%.
In comparison to peers, Amkay Products' PE ratio is notably lower than that of Poly Medicure, which stands at 59.53, and Blue Jet Health at 33.65, both of which are also classified as very expensive. Despite its strong ROCE of 21.48%, the elevated valuation metrics suggest that Amkay Products may not justify its current price level. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -12.66% compared to the Sensex's gain of 2.48%.