Is Ginni Filaments overvalued or undervalued?

As of 27 June 2025, Ginni Filaments has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 91.51, an EV to EBITDA of 18.59, and a PEG ratio of 0.19. Compared to its peers, K P R Mill Ltd is considered very expensive with a PE ratio of 47.84, while Trident is also fairly valued with a PE of 43.44, indicating that Ginni Filaments is positioned reasonably within its industry.
Despite its fair valuation, Ginni Filaments shows notable weaknesses, such as a low ROCE of 3.26% and ROE of 2.11%. Recent stock performance has outpaced the Sensex, with a year-to-date return of 40.56% compared to the Sensex's 7.58%, suggesting a strong market sentiment towards the stock. However, the high PE ratio indicates that investors may be pricing in significant future growth, which will need to materialize for the valuation to remain justified.