Is Jaipan Industrie overvalued or undervalued?

As of 29 August 2025, Jaipan Industrie has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 20.13, an EV to EBIT of 25.76, and a ROCE of 7.19%. Compared to its peers, Jaipan's valuation appears high; for instance, PTC India, which is rated very attractive, has a significantly lower PE ratio of 8.35, while Lloyds Enterprises is also very expensive with a PE of 38.87.
The company's recent stock performance has been underwhelming, with a year-to-date return of -13.73%, contrasting with the Sensex's positive return of 2.14% during the same period. This underperformance, combined with its elevated valuation ratios, reinforces the conclusion that Jaipan Industrie is overvalued in the current market environment.