Is Bharat Textiles overvalued or undervalued?

As of 29 October 2025, Bharat Textiles has moved from a grade of risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued. Key ratios reveal a PE ratio of 138.65, an EV to EBITDA of 17.39, and a Price to Book Value of 9.30, all of which suggest that the stock is priced excessively compared to its earnings and asset value.
In comparison to its peers, Bharat Textiles stands out unfavorably; for instance, K P R Mill Ltd has a PE ratio of 44.68, while Vardhman Textile, which is rated attractive, has a PE ratio of 15.17. This stark contrast highlights that Bharat Textiles is not only overvalued but also lacks the financial performance metrics that its peers exhibit. The company's recent stock performance relative to the Sensex, with a 10-year return of 144.51% compared to the Sensex's 216.70%, further reinforces the notion that it may not be a sound investment at its current valuation.