Is Khaitan Chemical overvalued or undervalued?

As of 14 October 2025, Khaitan Chemical's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 28.76, an EV to EBITDA of 23.25, and a ROE of 17.75%, all of which are substantially higher than many peers in the industry.
In comparison, Coromandel International has a PE ratio of 32.37 and an EV to EBITDA of 20.89, while Chambal Fertilizers stands out with a much lower PE of 11.07 and an EV to EBITDA of 7.38, reflecting a more attractive valuation. Despite Khaitan Chemical's strong historical stock performance, with a YTD return of 63.62% compared to the Sensex's 4.98%, the current valuation metrics suggest that the stock is not justified at its present price level.