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

As of 8 October 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 deemed overvalued. Key ratios include a PE ratio of 18.55, an EV to EBIT of 15.85, and an EV to EBITDA of 14.47, all of which suggest that the stock is trading at a premium compared to its earnings and cash flows.
In comparison to its peers, L.K. Mehta Poly. has a PE ratio that is lower than that of Supreme Industries at 59.31 and Astral at 78.11, both of which are also classified as very expensive. However, it is worth noting that Finolex Industries, which is rated fair, has a PE ratio of 30.47, indicating that L.K. Mehta Poly. may be overvalued relative to some of its competitors. The company's recent stock performance has lagged behind the Sensex, with a 1-week return of -1.02% compared to the Sensex's 0.98%, reinforcing the notion of overvaluation.