Is Deepak Nitrite overvalued or undervalued?

As of 18 August 2025, the valuation grade for Deepak Nitrite has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 40.85, a Price to Book Value of 4.60, and an EV to EBITDA of 25.86. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Deepak Nitrite's valuation appears elevated, especially when looking at Solar Industries, which has a PE ratio of 108.25, and Godrej Industries, with a PE ratio of 42.48. The disparity in valuations highlights that while Deepak Nitrite is considered very expensive, its peers exhibit even higher valuations, albeit with varying growth prospects. Notably, Deepak Nitrite has underperformed the Sensex significantly over the past year, with a stock return of -37.31% compared to the Sensex's 1.04%, reinforcing the notion that the stock may be overvalued in the current market environment.