Is Kitex Garments overvalued or undervalued?

As of 23 October 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 32.28, an EV to EBITDA of 27.14, and a Price to Book Value of 4.13, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Kitex Garments has a lower PE ratio than K P R Mill Ltd, which stands at 44.73, but is higher than Vardhman Textile, which is fairly valued with a PE of 15.03. The PEG ratio for Kitex is 0.42, indicating potential growth relative to its price, yet the overall valuation remains very expensive. Notably, while Kitex Garments has outperformed the Sensex over the past year with a return of 33.67% compared to the Sensex's 5.59%, the current valuation metrics suggest caution for potential investors.