Is Graphite India overvalued or undervalued?

As of 29 August 2025, Graphite India has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued based on its current metrics. The PE ratio stands at 27.78, while the EV to EBITDA ratio is significantly high at 37.74, and the PEG ratio is 1.53, suggesting that the stock may not be a compelling buy at its current price.
In comparison to its peers, Graphite India's valuation appears less favorable. HEG and Esab India are both categorized as very expensive, with PE ratios of 45.53 and 45.83, respectively, while Ador Welding is rated attractive with a PE of 35.98. Despite Graphite India's relatively lower PE, the high EV to EBITDA ratio indicates that it may not be justified at this price point. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -9.41% compared to the Sensex's positive return of 2.14%, reinforcing the view that it is currently overvalued.