Is Graphite India overvalued or undervalued?

As of 13 June 2025, the valuation grade for Graphite India has moved from very expensive to expensive. Based on the analysis, the company appears to be overvalued. Key ratios include a PE ratio of 22.12, an EV to EBITDA of 28.31, and a Price to Book Value of 1.74, which indicate that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Graphite India's PE ratio is significantly lower than that of HEG, which stands at 84.56, and Esab India at 45.27, both categorized as very expensive. However, it is higher than Ador Welding's attractive PE of 25.99, suggesting that while Graphite India is less expensive than some peers, it is still not positioned favorably in the current market. Notably, Graphite India's stock has underperformed against the Sensex over the past year, with a return of -9.30% compared to the Sensex's 5.61%, further reinforcing the view of overvaluation.