Is Ducol Organics overvalued or undervalued?

As of 24 September 2025, Ducol Organics has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 54.94, EV to EBITDA of 36.89, and a Price to Book Value of 3.95. In comparison to its peers, Sudarshan Chem, which is also expensive, has a significantly higher PE ratio of 137.98, while Meghmani Organics, rated attractive, has a much lower PE of 115.08, highlighting the disparity in valuation metrics within the industry.
The company's return performance has been relatively strong, with a year-to-date return of 15.11% compared to the Sensex's 5.97%, suggesting that it has outperformed the broader market recently. However, the overall valuation metrics indicate that Ducol Organics is not justified at its current price level, reinforcing the conclusion that it is overvalued in the current market environment.