Is Ducol Organics overvalued or undervalued?

As of 3 October 2025, the valuation grade for Ducol Organics has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 58.83, an EV to EBITDA of 34.08, and a Price to Book Value of 3.01, all of which suggest high valuation multiples compared to industry norms.
In comparison to its peers, Ducol Organics' PE ratio is notably higher than Sudarshan Chemical's 121.76 and significantly above Meghmani Organics' fair valuation with a PE of 114.2. The company's ROCE stands at 7.00% and ROE at 5.12%, which are relatively low given the high valuation multiples. Recent stock performance has outpaced the Sensex, with a year-to-date return of 23.26% compared to the Sensex's 5.28%, reinforcing the narrative of overvaluation as the stock price rises despite underlying performance metrics.