Is Ceeta Industries overvalued or undervalued?

As of 8 August 2025, Ceeta Industries has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 65.84, an EV to EBITDA ratio of 64.69, and a PEG ratio of 0.48. In comparison to its peers, Kajaria Ceramics has a PE ratio of 61.18 and an EV to EBITDA of 32.20, while L T Foods, which is rated very attractive, has a significantly lower PE ratio of 25.29 and an EV to EBITDA of 16.77.
Despite the fair valuation, Ceeta Industries shows some concerning financial metrics, such as a negative ROCE of -1.63% and a low ROE of 2.20%. While the stock has underperformed the Sensex in the short term, it has significantly outperformed over the longer term, with a 5-year return of 1449.12% compared to the Sensex's 109.93%. This long-term performance may indicate potential for recovery and growth, reinforcing its current fair valuation status.