Is MCON Rasayan overvalued or undervalued?

As of 28 August 2025, MCON Rasayan's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE ratio of 29.09, an EV to EBITDA of 13.87, and a Price to Book Value of 4.22, all suggesting that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, MCON Rasayan's PE ratio is notably lower than Asian Paints, which stands at 62.02, but higher than Kansai Nerolac's attractive valuation at 30.11. The EV to EBITDA ratio also reflects a premium, as MCON's 13.87 is higher than Kansai Nerolac's 18.99. Despite recent stock performance showing a 10.15% gain over the past week compared to a -2.32% drop in the Sensex, the overall year-to-date performance of MCON Rasayan has been poor, with a decline of 57.1%. This reinforces the view that the stock is overvalued in the current market context.