Is Ducol Organics overvalued or undervalued?

As of 25 September 2025, Ducol Organics has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 55.52, an EV to EBITDA of 31.98, and a Price to Book Value of 2.84, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Sudarshan Chemicals has a significantly higher PE ratio of 130.4, while Kiri Industries is at a much lower PE of 18.88, indicating a wide valuation range within the industry. Additionally, Ducol's ROCE stands at 7.00% and ROE at 5.12%, which are relatively low compared to the high valuation metrics, reinforcing the notion that the stock may not justify its current price. Over the past year, Ducol has outperformed the Sensex with a return of 22.23% compared to the Sensex's decline of 4.28%, but this does not mitigate the concerns regarding its overvaluation.