Is Pokarna overvalued or undervalued?

As of 29 October 2025, Pokarna's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 15.56, an EV to EBITDA of 9.53, and a Price to Book Value of 3.65, which suggest that the stock is trading at a premium relative to its earnings and assets.
In comparison to its peers, Pokarna's PE Ratio is significantly lower than that of Kajaria Ceramics, which stands at 49.45, and L T Foods, at 23.63. This disparity highlights that while Pokarna may be overvalued, its earnings potential does not align with the higher valuations seen in its industry peers. Additionally, despite recent strong stock performance with a 1-week return of 13.77% compared to the Sensex's 0.68%, the year-to-date return of -21.32% suggests that the market may be reassessing its growth prospects.