Is AYM Syntex overvalued or undervalued?

Aug 15 2025 08:06 AM IST
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As of August 14, 2025, AYM Syntex is considered overvalued due to its high PE ratio of 195.03, significantly exceeding its peers, and despite strong historical returns, it has underperformed relative to the market with a year-to-date decline of 22.37%.
As of 14 August 2025, AYM Syntex has moved from a fair to an attractive valuation grade. The company is currently considered overvalued based on its high PE ratio of 195.03, which significantly exceeds that of its peers, such as K P R Mill Ltd at 39.62 and Trident at 32.66. Additionally, AYM Syntex's EV to EBITDA stands at 12.35, while its PEG ratio is notably at 0.00, indicating a potential disconnect between its earnings growth expectations and its current price.

In comparison to its peers, AYM Syntex's ratios suggest a premium valuation that may not be justified by its performance metrics, including a ROCE of 7.51% and a ROE of 2.01%. While the company has shown strong historical returns, particularly over the last five years with a gain of 651.36%, its recent stock performance has lagged behind the Sensex, with a year-to-date decline of 22.37% compared to the Sensex's gain of 3.15%. This combination of high valuation ratios and underperformance relative to the market indicates that AYM Syntex is currently overvalued.
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