Is Ishan Dyes overvalued or undervalued?

As of 17 November 2025, Ishan Dyes has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its PE ratio of -42.89, an EV to EBITDA of 108.64, and a ROE of -3.16%. In comparison to its peers, Sudarshan Chemicals has a PE of 133.89 and is rated fair, while Meghmani Organics, rated attractive, has a PE of 46.18.
The significant disparity in valuation metrics highlights Ishan Dyes' overvaluation, especially considering its negative earnings and low return on capital employed (ROCE) of just 0.06%. Despite a strong year-to-date return of 33.77% compared to the Sensex's 8.72%, the fundamentals suggest that the stock is not justified at its current price level.