Is Ceeta Industries overvalued or undervalued?

As of 23 September 2025, Ceeta Industries has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 59.30, an EV to EBITDA ratio of 49.41, and a Price to Book Value of 2.17. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Ceeta Industries' PE ratio is significantly higher than that of Kajaria Ceramics, which stands at 55.47, and L T Foods, which is much lower at 24.28. Additionally, Ceeta's ROE of 2.82% and negative ROCE of -1.60% further highlight its struggles relative to more attractive competitors like Cera Sanitary, which has a PE of 32.54. Despite a strong performance over the long term, with a 3-year return of 153.13% compared to Sensex's 41.31%, the current valuation does not justify the high price level.