Is Dhariwalcorp overvalued or undervalued?

As of 24 June 2025, Dhariwalcorp's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 37.24, an EV to EBITDA ratio of 44.28, and an ROE of 40.69%. Compared to its peers, Agarwal Industrial, which is rated as very attractive, has a much lower PE ratio of 12.35 and an EV to EBITDA of 8.79, highlighting the disparity in valuation metrics.
In the specialty chemicals sector, Dhariwalcorp's high valuation ratios suggest that investors are pricing in substantial growth expectations that may not be justified by its current performance. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 13.92% compared to the Sensex's 5.92%, but this does not mitigate the concerns regarding its elevated valuation. Overall, the combination of high valuation ratios and peer comparisons strongly supports the conclusion that Dhariwalcorp is overvalued.