Is Century Enka overvalued or undervalued?

As of 7 November 2025, the valuation grade for Century Enka has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 16.91, a price-to-book value of 0.07, and a negative EV to EBIT of -77.18, indicating significant challenges in profitability. In comparison to peers, K P R Mill Ltd is very expensive with a PE ratio of 43.65, while Trident is also fairly valued with a PE of 32.8.
Despite the recent valuation adjustment, Century Enka has underperformed relative to the Sensex, with a year-to-date return of -27.79% compared to the Sensex's 6.50%. This underperformance, along with the low price-to-book ratio, suggests that while the company is fairly valued based on its current metrics, there may be underlying issues affecting its growth prospects.