Is Jakharia Fabric overvalued or undervalued?

As of 22 September 2025, the valuation grade for Jakharia Fabric has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 16.11, an EV to EBITDA of 9.06, and a ROCE of 19.17%.
In comparison with peers, Jakharia Fabric's PE ratio is notably lower than that of K P R Mill Ltd, which stands at 46.89, but higher than Vardhman Textile's PE of 14.29. This suggests that while Jakharia Fabric is priced higher than some competitors, it still lags behind in terms of value compared to others in the sector. Additionally, the company's stock has significantly outperformed the Sensex over the past year, with a return of 284.72% compared to the Sensex's decline of 2.28%, reinforcing the notion of overvaluation amidst strong market performance.