Is Khaitan Chemical overvalued or undervalued?

As of 12 May 2025, Khaitan Chemical's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 574.94, an EV to EBITDA of 48.43, and a PEG ratio of 5.64, all of which are significantly higher than industry norms.
In comparison to its peers, Khaitan Chemical's ratios starkly contrast with those of Chambal Fertilizers, which has a PE of 13.11 and an EV to EBITDA of 8.32, and Deepak Fertilizers, with a PE of 20.81 and an EV to EBITDA of 11.93. This highlights the substantial premium at which Khaitan Chemical is trading relative to its competitors. Furthermore, while Khaitan Chemical has shown impressive returns over the long term, its recent performance has lagged behind the Sensex, particularly over the past three years, where it has returned -25.61% compared to the Sensex's 49.24%.