Is Gravita India overvalued or undervalued?

As of 10 October 2025, Gravita India has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial metrics, with a PE ratio of 35.87, an EV to EBITDA of 34.19, and a PEG ratio of 1.47. In comparison, peers such as Hindustan Zinc and Vedanta show significantly lower PE ratios of 20.43 and 14.29, respectively, indicating that Gravita India is trading at a premium relative to its industry counterparts.
Despite a strong return on capital employed (ROCE) of 20.24% and a return on equity (ROE) of 15.09%, the valuation metrics suggest that the stock is not justified at its current price of 1644.20. The recent performance shows that while Gravita India has outperformed the Sensex in the short term over the past week, it has significantly underperformed over the year and year-to-date. This reinforces the conclusion that the stock is overvalued in the current market environment.