Is Pokarna overvalued or undervalued?

As of 23 October 2025, the valuation grade for Pokarna has moved from fair to expensive, indicating a shift in its market positioning. The company is currently overvalued, with a PE ratio of 15.17, a Price to Book Value of 3.56, and an EV to EBITDA of 9.31. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Pokarna's valuation metrics stand out unfavorably. For instance, Kajaria Ceramics, which is rated attractive, has a significantly higher PE ratio of 49.97, while L T Foods, rated very attractive, has a PE of 23.81. Additionally, Pokarna's PEG ratio of 0.20 is low, yet this does not compensate for its overall expensive valuation. Notably, while Pokarna has shown strong returns over the long term, its recent performance has lagged behind the Sensex, with a year-to-date return of -23.31% compared to the Sensex's 8.21%.