Is Lexus Granito overvalued or undervalued?

As of 14 August 2025, the valuation grade for Lexus Granito has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company is currently overvalued, as evidenced by its negative PE Ratio of -60.61, a Price to Book Value of 13.90, and an EV to EBIT of 46.50. These ratios suggest that the stock is priced significantly higher than its earnings and book value, raising concerns about its sustainability.
In comparison to its peers, Lexus Granito's valuation metrics stand out unfavorably. For instance, Kajaria Ceramics has a PE Ratio of 59.35 and an EV to EBITDA of 31.22, while L T Foods presents a more attractive profile with a PE Ratio of 24.92 and an EV to EBITDA of 16.54. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -28.83% compared to the Sensex's 4.17%, reinforcing the notion that Lexus Granito is currently overvalued in the market.