Is Candour Techtex overvalued or undervalued?

As of 18 September 2025, the valuation grade for Candour Techtex has moved from fair to expensive, indicating that the company is overvalued. The key ratios reflect this assessment, with a PE ratio of -150.52, an EV to EBITDA of 40.33, and a Price to Book Value of 4.09. These figures suggest significant concerns regarding profitability and valuation relative to its assets.
In comparison to its peers, Candour Techtex stands out negatively; for instance, Bajaj Steel Industries has a PE ratio of 21.58 and an EV to EBITDA of 14.29, highlighting a stark contrast in valuation metrics. Additionally, LMW is categorized as very expensive with a PE of 157.65, further underscoring the inflated valuation of Candour Techtex. While the company has shown strong returns over the long term, with a 1Y return of 31.68% compared to the Sensex's 0.08%, the current valuation metrics suggest that it is not justified, leading to the conclusion that Candour Techtex is overvalued.