Is Cont. Petroleums overvalued or undervalued?

As of 10 November 2025, the valuation grade for Cont. Petroleums has moved from attractive to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 19.72, an EV to EBITDA of 11.06, and a ROCE of 21.63%.
In comparison to its peers, Cont. Petroleums has a higher PE ratio than Castrol India, which stands at 19.35, and significantly higher than Gulf Oil Lubricants, which is at 16.19. The company’s PEG ratio is notably 0.00, suggesting no growth expectations are priced in, which is unusual. Despite a strong performance in the past year with a stock return of 28.79% compared to the Sensex's 5.09%, the current valuation suggests that investors may be overestimating future growth potential.