Is MCON Rasayan overvalued or undervalued?

As of 22 September 2025, MCON Rasayan's valuation grade has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued, with a PE ratio of 23.25, an EV to EBITDA of 12.12, and a Price to Book Value of 1.59. Compared to its peers, MCON Rasayan's valuation is more attractive than Asian Paints, which is expensive with a PE of 61.71, but it still lags behind Kansai Nerolac, which is rated attractive with a PE of 31.97.
Despite the recent downturn in stock performance, with a year-to-date decline of 66% compared to a 6.59% gain in the Sensex, the current valuation metrics suggest that MCON Rasayan is positioned reasonably within its industry. The company's ROCE stands at 7.80% and ROE at 6.84%, reflecting its operational efficiency and profitability relative to its equity. Overall, MCON Rasayan appears to be fairly valued in the current market context.