Is Caprolactam Chem overvalued or undervalued?

As of 22 August 2025, the valuation grade for Caprolactam Chem has moved from fair to expensive. The company is currently overvalued, with a PE ratio of -21.25, an EV to EBITDA of 12.88, and a Price to Book Value of 4.40. Notably, its ROCE stands at -0.45% and ROE at -1.66%, indicating poor profitability metrics.
In comparison to its peers, Caprolactam Chem's valuation appears less favorable; for instance, Sun Pharma has a PE ratio of 34.36 and an EV to EBITDA of 23.27, while Cipla is considered attractive with a PE of 23.83 and an EV to EBITDA of 16.81. Despite some recent stock performance showing a 6.08% return over the past week compared to a 0.88% return for the Sensex, the overall valuation suggests that Caprolactam Chem is not a compelling investment at its current price of 46.20.