Is Candour Techtex overvalued or undervalued?

As of 3 July 2025, the valuation grade for Candour Techtex has moved from fair to expensive, indicating that the company is overvalued. The key ratios highlight this assessment, with a PE ratio of 157.56, an EV to EBITDA of 30.34, and a ROCE of only 2.20%. In comparison to its peers, Bajaj Steel Industries, which is rated attractive, has a significantly lower PE ratio of 22.19, while LMW, categorized as very expensive, shows a PE ratio of 174.54.
Given these metrics, Candour Techtex appears overvalued in the current market environment. Despite a strong one-year stock return of 80.76% compared to the Sensex's 4.07%, the high valuation ratios suggest that the stock may not be sustainable at its current price level.