Is Khemani Distrib. overvalued or undervalued?

As of 4 July 2025, Khemani Distrib. has moved from a valuation grade of risky to expensive, indicating a shift towards a more cautious outlook. The company is currently considered overvalued. Key ratios include a PE ratio of 22.30, an EV to EBIT of 16.56, and a ROCE of 22.63%.
In comparison to its peers, Khemani Distrib.'s PE ratio is significantly lower than Elitecon International and Lloyds Enterprises, which have PE ratios of 176.28 and 202.81, respectively, both classified as very expensive. However, it is also notably higher than PTC India, which is rated very attractive with a PE of 9.32. Despite recent stock performance showing a strong year-to-date return of 49.3% compared to the Sensex's 6.77%, the current valuation suggests that Khemani Distrib. may not sustain its high market price.