Is Khaitan Chemical overvalued or undervalued?

As of 29 October 2025, the valuation grade for Khaitan Chemical has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 28.62, an EV to EBITDA of 23.16, and a ROE of 17.75%. In comparison to peers, Coromandel International has a higher PE ratio of 33.46 and an EV to EBITDA of 21.640, while Chambal Fertilizers stands out with a much lower PE ratio of 11.35 and an EV to EBITDA of 7.590.
Despite a strong year-to-date return of 62.78%, which significantly outpaces the Sensex's 8.78%, the current valuation metrics suggest that Khaitan Chemical's stock price does not justify its earnings potential relative to its peers. The company’s high valuation ratios indicate that it may not be an attractive investment at this time.