Is Century Enka overvalued or undervalued?

As of 4 November 2025, Century Enka's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its key financial ratios, which include a Price-to-Earnings (PE) ratio of 17.59, an EV to EBITDA ratio of 7.54, and a PEG ratio of 2.37. These figures suggest that the stock may not offer sufficient growth potential relative to its price.
In comparison to its peers, Century Enka's PE ratio is significantly lower than K P R Mill Ltd, which stands at 42.51, and Trident, at 33.47, both of which are categorized as expensive. However, it is worth noting that Vardhman Textile, which is rated as attractive, has a lower PE ratio of 15, indicating that Century Enka may be priced higher than its more favorable peers. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -26.10%, contrasting sharply with the Sensex's gain of 6.81% during the same period, further reinforcing the notion of overvaluation.