Is Mahickra Chem. overvalued or undervalued?

As of 28 August 2025, Mahickra Chem. has moved from a fair valuation to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 48.12, an EV to EBITDA of 54.07, and a Price to Book Value of 3.65. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, which raises concerns about sustainability.
In comparison to its peers, Mahickra Chem.'s valuation stands out as particularly high; for instance, Godrej Industries, which is rated attractive, has a PE ratio of 41.86, while Solar Industries, also very expensive, trades at a PE of 99.06. The disparity in these valuations highlights that Mahickra Chem. is not only overvalued relative to its immediate competitors but also raises questions about its growth prospects given its low ROCE of 4.71% and ROE of 7.59%. Notably, Mahickra Chem. has outperformed the Sensex in various time frames, including a 39.05% return over the past year, which may contribute to the inflated valuation despite the underlying financial metrics suggesting caution.