Is Century Enka overvalued or undervalued?

As of 12 September 2025, the valuation grade for Century Enka has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 19.21, an EV to EBITDA of 8.54, and a Price to Book Value of 0.78.
In comparison to peers, Century Enka's PE Ratio is significantly lower than K P R Mill Ltd, which stands at 42, and higher than Vardhman Textile, which has a PE of 14.56, indicating that while it is expensive, it is not the most overvalued in its sector. Additionally, Century Enka's ROCE of 5.38% and ROE of 4.69% suggest lower efficiency compared to its peers, reinforcing the overvaluation stance. The company's stock has underperformed relative to the Sensex, particularly over the past year, where it has declined by 33.46% compared to a slight decline of 1.28% for the index.