Is Asian Granito overvalued or undervalued?

As of 3 November 2025, the valuation grade for Asian Granito has moved from very attractive to attractive. The company is currently considered overvalued, primarily due to its high PE ratio of 69.23 and EV to EBIT ratio of 71.61, which significantly exceed those of its peers. In comparison, Kajaria Ceramics has a PE ratio of 48.62 and an EV to EBITDA of 26.93, while L T Foods shows a much lower PE of 22.67 and an EV to EBITDA of 14.35.
Despite a PEG ratio of 0.34 indicating potential for growth relative to its price, the overall financial metrics suggest that Asian Granito is priced too high compared to its earnings and cash flow generation capabilities. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -2.36%, contrasting with the Sensex's return of 7.47% during the same period.