Is Borana Weaves overvalued or undervalued?

As of 17 November 2025, Borana Weaves has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 18.51, a Price to Book Value of 8.63, and an EV to EBITDA ratio of 12.91. In comparison to its peers, K P R Mill Ltd is classified as very expensive with a PE ratio of 44.24, while Trident is seen as attractive with a PE ratio of 32.69, indicating that Borana Weaves is priced higher relative to some of its competitors.
The company's strong ROCE of 33.85% and ROE of 46.60% suggest robust profitability; however, these metrics do not justify its current valuation levels. Additionally, Borana Weaves has outperformed the Sensex significantly over the past week and month, with returns of 18.97% and 28.52%, respectively, which may have contributed to the inflated valuation. Overall, the combination of high valuation ratios and peer comparisons indicates that Borana Weaves is overvalued in the current market.