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

As of 12 November 2025, the valuation grade for L.K. Mehta Poly. has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued based on its financial ratios, with a PE ratio of 31.87, an EV to EBITDA of 14.89, and a ROE of 5.51%. In comparison to its peers, L.K. Mehta Poly. stands out as having a higher PE ratio than Finolex Industries, which has a PE of 24.16, and a lower valuation compared to Supreme Industries, which has a PE of 58.69.
The company's valuation appears excessive, especially when considering its low ROE of 5.51% and the absence of a dividend yield. While the stock has shown a slight gain of 3.11% over the past month compared to a 2.38% return from the Sensex, the overall outlook remains concerning given the high valuation metrics relative to its peers.