Is Anik Industries overvalued or undervalued?
As of June 2, 2025, Anik Industries is considered overvalued with a PE ratio of 101.84 and an EV to EBITDA of 116.73, significantly higher than its peers like Hindustan Unilever and Nestle India, while also showing low returns and underperforming the Sensex year-to-date.
As of 2 June 2025, Anik Industries has moved from a risky to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 101.84, an EV to EBITDA of 116.73, and a ROE of 0.79%. In comparison to its peers, Anik Industries' PE ratio significantly exceeds that of Hindustan Unilever at 53.88 and Nestle India at 75.2, indicating a stark contrast in valuation. The company's high valuation metrics, particularly in relation to its peers, suggest that it is not justified given its low returns, as evidenced by a ROCE of only 0.55%. Additionally, while Anik Industries has performed exceptionally well over the long term, its recent stock performance has lagged behind the Sensex, with a year-to-date return of -3.69% compared to the Sensex's 5.58%.
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