Is Kaytex Fabrics overvalued or undervalued?

As of 18 November 2025, the valuation grade for Kaytex Fabrics has moved from does not qualify to very attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued, with a PE ratio of 7.91, an EV to EBIT of 5.30, and an EV to EBITDA of 4.55, all of which are substantially lower than many of its peers. For instance, K P R Mill Ltd is classified as very expensive with a PE ratio of 45.81, while Trident, deemed attractive, has a PE of 32.57.
In comparison to its peers, Kaytex Fabrics stands out with a PEG ratio of 0.00, suggesting strong growth potential relative to its price. The company's return metrics are also impressive, with a ROCE of 22.14% and a ROE of 15.02%. Despite a recent decline in stock price compared to the Sensex, where it has underperformed over the past week, the overall valuation metrics indicate that Kaytex Fabrics presents a compelling investment opportunity.