Is Milton Industri. overvalued or undervalued?

As of 18 September 2025, the valuation grade for Milton Industries has moved from fair to expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 38.95, an EV to EBIT of 40.07, and an ROCE of just 2.52%, which raises concerns about its profitability relative to its valuation.
When compared to peers, Milton Industries' PE ratio is notably higher than that of Century Plyboard, which stands at 88.19, and Greenply Industries, which has a PE of 48.27, suggesting that while Milton is priced high, it does not offer a competitive advantage in terms of earnings. Additionally, the company's performance has lagged behind the Sensex, with a year-to-date return of -35.82% compared to the Sensex's 7.52%, further reinforcing the notion that the stock may be overvalued in its current state.