Is Ishan Dyes overvalued or undervalued?

As of 19 November 2025, the valuation grade for Ishan Dyes has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios highlight this situation, with a PE ratio of -41.60, an EV to EBITDA of 106.40, and a ROE of -3.16%.
In comparison to its peers, Sudarshan Chemicals, which is rated fair, has a PE ratio of 135.4 and an EV to EBITDA of 17.78, while Kiri Industries is rated risky with a PE of 26.86 and an EV to EBITDA of -53.74. The stark contrast in these metrics suggests that Ishan Dyes is not only overvalued but also underperforming relative to its industry counterparts. Despite a strong year-to-date return of 29.74% compared to the Sensex's 9.02%, the underlying financial ratios raise concerns about the sustainability of this performance.