Is Chemcon Special. overvalued or undervalued?

As of 15 May 2025, the valuation grade for Chemcon Speciality Chemicals Ltd. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 30.25, an EV to EBITDA of 18.75, and a PEG ratio of 1.10, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Chemcon's valuation appears elevated; for instance, its PE ratio is significantly higher than the industry average, indicating a potential overvaluation. Notable peers include companies with lower PE ratios and more favorable EV to EBITDA metrics, which further highlight Chemcon's expensive valuation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -11.29% compared to the Sensex's 5.57%, reinforcing the notion that the stock may not be a compelling investment at its current price.