Is Cedaar Textile overvalued or undervalued?

As of 16 October 2025, Cedaar Textile's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial ratios, with a PE ratio of 11.76, an EV to EBITDA of 8.21, and an EV to Sales ratio of 1.19. These metrics suggest that the stock is priced higher than its earnings and sales justify, especially when compared to peers like K P R Mill Ltd, which has a much higher PE ratio of 43.34, and Trident, which is rated fair with a PE of 32.81.
In comparison to its peers, Cedaar Textile's financial performance appears less favorable, as it lags behind companies rated as attractive or very attractive, such as Welspun Living and Arvind Ltd. The recent performance of Cedaar Textile has also been underwhelming, with a 1-week return of -4.27% compared to a 1.60% gain in the Sensex, reinforcing the notion that the stock is not only overvalued but also underperforming relative to the broader market.