Is Petro Carbon overvalued or undervalued?

As of 28 August 2025, Petro Carbon's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a PE ratio of 47.46, an EV to EBITDA of 38.63, and a Price to Book Value of 2.78. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about its sustainability at these levels.
In comparison to its peers, Petro Carbon stands out with a much higher PE ratio than Agarwal Industrial, which has a PE of 12.94, and Manali Petrochem, at 33.89. This stark contrast highlights the overvaluation of Petro Carbon relative to its industry counterparts. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -13.83%, while the Sensex has gained 3.62% in the same period, further reinforcing the notion of overvaluation.