Is Lux Industries overvalued or undervalued?

Nov 08 2025 08:06 AM IST
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As of November 7, 2025, Lux Industries is considered overvalued with a PE ratio of 24.07, a Price to Book Value of 2.16, and an EV to EBITDA ratio of 16.97, especially when compared to peers like K P R Mill Ltd and Vardhman Textile, and it has underperformed the Sensex with a year-to-date return of -38.25%.
As of 7 November 2025, Lux Industries has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its key financial ratios. The PE ratio stands at 24.07, while the Price to Book Value is 2.16, and the EV to EBITDA ratio is 16.97. These figures suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Lux Industries' valuation appears high, especially when looking at K P R Mill Ltd, which has a significantly higher PE ratio of 43.65, and Vardhman Textile, which is considered attractive with a PE ratio of 15.12. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -38.25% compared to the Sensex's positive return of 6.50%. This further reinforces the view that Lux Industries is currently overvalued in the market.
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