Is Graphite India overvalued or undervalued?

As of 29 August 2025, Graphite India's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued. The current price-to-earnings (PE) ratio stands at 27.78, while the price-to-book value is 1.70, and the EV to EBITDA ratio is notably high at 37.74.
In comparison to its peers, Graphite India’s PE ratio is significantly lower than that of HEG and Esab India, which are at 45.53 and 45.83 respectively, both classified as very expensive. Additionally, Ador Welding, which is rated attractive, has a PE of 35.98, further emphasizing the relative overvaluation of Graphite India. Despite a strong historical performance over the long term, recent stock returns have lagged behind the Sensex, with a year-to-date decline of 9.41% compared to the Sensex's gain of 2.14%.