Is L.K.Mehta Poly. overvalued or undervalued?

As of 26 September 2025, the valuation grade for L.K. Mehta Poly. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 18.74, an EV to EBIT of 16.01, and an EV to EBITDA of 14.61, all of which suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to peers, L.K. Mehta Poly. has a PE Ratio that is lower than Supreme Industries at 60.45 and Astral at 76.14, both of which are also classified as very expensive. However, it is worth noting that while L.K. Mehta Poly. is overvalued, it is less extreme than some of its peers, which could indicate a potential for relative stability. Recent stock performance shows a decline of 2.4% over the past month, contrasting with a slight drop in the Sensex by 0.45%, further reinforcing the notion of overvaluation in the current market context.