Is Ducol Organics overvalued or undervalued?

As of 1 October 2025, Ducol Organics has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE Ratio of 57.29, an EV to EBIT of 51.72, and an EV to EBITDA of 33.11. These figures indicate that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Ducol Organics' PE Ratio is significantly higher than that of Kiri Industries at 18.71 and Ultramarine Pigments at 17.12, both of which are more attractively valued. Additionally, while Ducol's ROCE stands at 7.00% and ROE at 5.12%, these returns are relatively low compared to the high multiples it commands. The recent stock performance, with a year-to-date return of 20.05% compared to a Sensex return of 5.04%, may suggest market optimism, but the underlying valuation metrics indicate that the stock is overvalued.