Is Polycab India overvalued or undervalued?
As of June 5, 2025, Polycab India Ltd. is considered very expensive with a high PE ratio of 45.49 and overvalued compared to its peers, despite strong operational metrics like a ROCE of 35.46% and negative year-to-date returns.
As of 5 June 2025, the valuation grade for Polycab India Ltd. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its high PE ratio of 45.49, a Price to Book Value of 9.35, and an EV to EBITDA ratio of 30.26. In comparison, its peer, which has a similar valuation, shows a PE ratio of 30.26, highlighting the premium at which Polycab is trading.The company's strong ROCE of 35.46% and ROE of 20.56% reflect its operational efficiency, yet these metrics do not justify the elevated valuation levels. Additionally, Polycab's recent stock performance has outpaced the Sensex over the past week and month, but its year-to-date and one-year returns are negative, further reinforcing the notion that the stock is overvalued in the current market context.
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