Is Asian Granito overvalued or undervalued?

As of 23 October 2025, the valuation grade for Asian Granito has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently considered overvalued based on its high PE ratio of 67.65 and an EV to EBITDA ratio of 22.01, which are significantly above industry averages. In comparison, peer company Kajaria Ceramics has a PE ratio of 49.97 and an EV to EBITDA of 27.69, while L T Foods shows a much more favorable EV to EBITDA of 15.85, suggesting that Asian Granito's valuation metrics are less favorable relative to its peers.
Additionally, Asian Granito's ROCE and ROE stand at a mere 0.93%, reflecting weak profitability compared to competitors like Cera Sanitaryware, which has a more robust valuation profile. The company's stock has underperformed against the Sensex over the past year, with a return of -4.07% compared to the Sensex's 5.59%, reinforcing the notion that it may be overvalued in the current market context.