Is Kanchi Karpooram overvalued or undervalued?

As of 17 November 2025, Kanchi Karpooram's valuation grade has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 30.23, an EV to EBIT of 38.38, and a Price to Book Value of 0.76. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Kanchi Karpooram's PE ratio is lower than Solar Industries at 95.31 and Gujarat Fluoroch at 57.85, but it is still elevated given its own financial performance, particularly with a ROCE of only 1.87% and a ROE of 2.50%. The company's recent stock performance has been poor, with a year-to-date return of -30.80%, significantly underperforming the Sensex, which has returned 8.72% over the same period. This further reinforces the conclusion that Kanchi Karpooram is overvalued in the current market environment.