Is Oriental Carbon overvalued or undervalued?

As of 27 June 2025, the valuation grade for Oriental Carbon has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 30.72, an EV to EBITDA ratio of 9.75, and a Price to Book Value of 0.85. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Oriental Carbon's valuation stands out as particularly high. For instance, Solar Industries has a much higher PE ratio of 131.12, while Godrej Industries, which is rated as attractive, has a PE of 42.84. The notable disparity in these valuations reinforces the conclusion that Oriental Carbon is overvalued. Additionally, the company's recent stock performance has lagged significantly behind the Sensex, with a one-year return of -69.08% compared to the Sensex's 6.08%, further supporting the assessment of overvaluation.