Is Jocil overvalued or undervalued?

As of 27 May 2025, the valuation grade for Jocil has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios reflect this sentiment, with a PE ratio of 142.99, an EV to EBITDA of 24.75, and a Price to Book Value of 0.68, which suggests that the stock is trading at a high premium relative to its earnings and book value.
In comparison to its peers, Jocil's PE ratio is significantly higher than Solar Industries at 123.77 and Godrej Industries at 46.63, both of which are categorized as very expensive and attractive, respectively. Additionally, Jocil's EV to EBITDA ratio is also elevated compared to peers like Deepak Nitrite at 24.57. The company's recent stock performance has been underwhelming, with a year-to-date return of -18.53%, contrasting with the Sensex's gain of 6.22% during the same period, further reinforcing the notion that Jocil may be overvalued in the current market environment.