Is Chamanlal Setia overvalued or undervalued?

As of 14 November 2025, Chamanlal Setia's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 14.34, an EV to EBITDA ratio of 8.60, and a ROE of 12.38%. In comparison to peers, KRBL is rated attractive with a PE of 16.14, while GRM Overseas is considered expensive with a PE of 47.57.
Despite the recent adjustment in valuation, Chamanlal Setia's performance has been mixed, with a year-to-date return of -36.65% compared to the Sensex's 8.22% increase. This underperformance may suggest that the market has not fully recognized the company's potential, especially given its solid ROCE of 24.82%. Overall, while the company is currently fairly valued, its ratios indicate it may be positioned for future growth if market conditions improve.