Is Pokarna overvalued or undervalued?

As of 10 November 2025, the valuation grade for Pokarna has moved from expensive to fair. Based on the current analysis, Pokarna appears to be fairly valued. The company's PE ratio stands at 14.36, while the EV to EBITDA ratio is 8.84, and the PEG ratio is notably low at 0.19, indicating strong growth potential relative to its price.
In comparison to peers, Pokarna's valuation metrics are significantly lower than those of Kajaria Ceramics, which has a PE ratio of 45.71, and Cera Sanitary, with a PE of 31.08. This suggests that Pokarna is positioned more attractively within its sector, especially considering its solid ROCE of 20.16% and ROE of 14.98%. While Pokarna has underperformed the Sensex in the short term, its long-term returns over 5 years of 502.28% indicate robust growth potential, reinforcing its fair valuation status.