Is Anupam Rasayan overvalued or undervalued?

As of 25 August 2021, Anupam Rasayan's valuation grade moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios such as the PE Ratio at 122.94, EV to EBITDA at 31.60, and Price to Book Value at 4.03 highlight its high valuation relative to earnings and book value.
When compared to peers, Anupam Rasayan's PE Ratio is substantially higher than PI Industries Ltd., which stands at 35.59, and UPL Ltd., with a PE Ratio of 38.74. This suggests that investors are paying a premium for Anupam Rasayan's shares without a corresponding increase in earnings. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 47.66% compared to the Sensex's 5.57%, further emphasizing the market's optimistic outlook despite the overvaluation.