Is Century Enka overvalued or undervalued?

As of 11 September 2025, the valuation grade for Century Enka has moved from expensive to very expensive. This indicates that the stock is currently overvalued. Key ratios reveal a PE ratio of 19.60, an EV to EBITDA of 8.78, and a PEG ratio of 2.64, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Century Enka's valuation appears significantly higher than Vardhman Textile, which has a PE ratio of 14.73 and is rated as fair, and Trident, which is considered expensive with a PE ratio of 34. Additionally, the company's recent performance has been underwhelming, with a year-to-date return of -17.64% compared to a modest 4.36% gain in the Sensex. Overall, Century Enka is deemed overvalued in the current market context.