Is Ginni Filaments overvalued or undervalued?

As of 24 October 2025, Ginni Filaments has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 14.08, an EV to EBITDA of 9.83, and a ROE of 14.18%. In comparison, peers such as K P R Mill Ltd have a significantly higher PE ratio of 43.24, while Vardhman Textile, deemed attractive, has a PE of 15.17, indicating that Ginni Filaments is priced higher relative to its earnings potential compared to some competitors.
Despite the recent stock performance, which has outpaced the Sensex with a year-to-date return of 45.16% compared to the Sensex's 7.77%, the valuation metrics suggest that Ginni Filaments may not sustain this growth at its current price level. The company's valuation appears stretched, particularly when juxtaposed with peers in the industry, reinforcing the conclusion that Ginni Filaments is overvalued at this time.