Is C P C L overvalued or undervalued?

As of 25 July 2025, the valuation grade for C P C L has moved from attractive to risky, indicating a significant shift in its market perception. The company appears to be overvalued based on its current metrics, with a PE ratio of -55.91 and an EV to EBITDA of 28.80, which are considerably worse than its peers. In comparison, Reliance Industries has a PE ratio of 23.11 and an EV to EBITDA of 11.96, while ONGC shows a PE of 8.32 and an EV to EBITDA of 4.65, highlighting that C P C L is not only lagging behind but also carries a higher risk profile.
The financial ratios further support the conclusion of overvaluation, with a ROCE of just 3.74% and an ROE of 2.61%. The company's recent stock performance has also been underwhelming, with a one-year return of -32.62%, contrasting sharply with the Sensex's 1.78% gain, which reinforces the notion that C P C L is currently overvalued in the market.