Is Caprolactam Chem overvalued or undervalued?

As of 18 November 2025, Caprolactam Chem's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, particularly when examining its headline ratios, which include a PE ratio of 2126.12, an EV to EBITDA of 12.59, and a ROCE of 5.74%.
In comparison to its peers, Caprolactam Chem's PE ratio is significantly higher than that of Cipla, which stands at 22.49, and Dr. Reddy's Labs at 17.97, both of which are also rated as attractive. This suggests that while Caprolactam Chem is viewed positively, its high PE ratio may indicate a premium valuation compared to its peers. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -16.12% compared to the Sensex's 8.36%, reinforcing the notion of undervaluation despite its attractive rating.