Is Graphite India overvalued or undervalued?

As of 13 June 2025, the valuation grade for Graphite India has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 22.12, an EV to EBITDA of 28.31, and a PEG ratio of 0.02, which suggests that while the stock may be generating earnings, its growth prospects are not reflected in a favorable PEG ratio.
When comparing Graphite India to its peers, HEG has a significantly higher PE ratio of 84.56, while Ador Welding, which is rated attractive, has a PE of 25.99. This indicates that Graphite India is priced higher relative to its earnings compared to some peers, despite its lower growth potential. Additionally, the company's recent stock performance shows a decline of 9.30% over the past year, contrasting with the Sensex's gain of 5.61%, further reinforcing the notion that Graphite India may be overvalued in the current market environment.