Is Petro Carbon overvalued or undervalued?

As of 26 August 2025, Petro Carbon's valuation grade has moved from very expensive to fair. The company is currently fairly valued, with a PE ratio of 47.46, an EV to EBITDA of 38.63, and a ROE of 5.85%. In comparison to its peers, Agarwal Industries is rated very attractive with a PE of 13.12, while Kothari Petrochem is also fair with a PE of 15.12, highlighting that Petro Carbon's valuation is significantly higher than these competitors.
Despite its fair valuation, Petro Carbon's stock has underperformed in the long term, with a year-to-date return of -13.71%, contrasting sharply with the Sensex's gain of 4.51%. This suggests that while the current valuation may be justified, the market sentiment towards Petro Carbon remains cautious.