Is Avax Apparels overvalued or undervalued?

As of 13 November 2025, the valuation grade for Avax Apparels has moved from very attractive to expensive, indicating a shift in market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 12.85, an EV to EBITDA of 8.56, and a ROCE of 24.25%.
In comparison to its peers, Avax Apparels' PE Ratio is significantly lower than that of Elitecon International, which stands at 320.89, and much more favorable than MMTC's PE of 141.6. However, when looking at the broader peer group, companies like PTC India, which is rated very attractive with a PE of 7.67, suggest that Avax Apparels may not be positioned competitively in terms of valuation. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-month return of 25.94% compared to the Sensex's 2.61%, which may reflect short-term investor enthusiasm despite the overall valuation concerns.