Is Lexus Granito overvalued or undervalued?

As of 22 September 2025, Lexus Granito's valuation grade has moved from expensive to fair, indicating a shift in the market's perception of its value. The company is currently assessed as fairly valued. Key ratios include a PE ratio of -57.75, an EV to EBITDA of 11.69, and a Price to Book Value of 13.24, which suggest that while the company has significant challenges, its valuation may not be as inflated as previously thought.
In comparison to its peers, Lexus Granito's valuation metrics stand out, particularly when juxtaposed with Kajaria Ceramics, which has a PE ratio of 56.02 and is deemed expensive, and L T Foods, rated very attractive with a PE of 25.55. The company's recent stock performance has been underwhelming, with a year-to-date return of -32.93%, contrasting sharply with the Sensex's positive return of 6.59% over the same period. This underperformance may reinforce the notion that while Lexus Granito is fairly valued, it faces significant operational hurdles that could impact future growth.