Is Kitex Garments overvalued or undervalued?

As of 18 March 2025, the valuation grade for Kitex Garments has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 40.42, an EV to EBITDA of 31.93, and a Price to Book Value of 5.85, all of which are elevated compared to industry norms.
In comparison to peers, Kitex Garments' PE ratio is lower than K P R Mill Ltd's 47.51 but higher than Trident's 42.6, while its EV to EBITDA is notably higher than Trident's 18.36. The company has shown strong stock performance, with a 1-year return of 326.21%, significantly outperforming the Sensex's 7.61% return over the same period, reinforcing the narrative of an overvalued position in the market.