Is Chemcrux Enterp. overvalued or undervalued?

As of 7 November 2025, Chemcrux Enterprises has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 103.22, an EV to EBIT of 35.45, and a Price to Book Value of 0.25. These metrics indicate a significant premium compared to its peers, such as Godrej Industries, which has a PE of 35.95 and an EV to EBITDA of 28.96, and Atul, which is fairly valued with a PE of 30.84.
The valuation of Chemcrux is concerning, particularly when considering its low ROE of 0.24% and ROCE of 0.56%, which suggest inefficiencies in generating returns relative to its high market price. Additionally, the company has underperformed against the Sensex, with a year-to-date return of -24.57% compared to the Sensex's 6.50%, further reinforcing the notion that Chemcrux is not a compelling investment at its current valuation.