Is Raj Rayon Inds. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Raj Rayon Industries has moved from expensive to fair. Based on the current analysis, the company appears to be fairly valued. Key ratios include a PE ratio of 39.43, an EV to EBITDA of 28.91, and a ROE of 26.11%.
In comparison to its peers, Raj Rayon Industries has a PE ratio that is lower than K P R Mill Ltd at 43.91, but higher than Trident at 32.4, indicating a competitive positioning within the industry. Additionally, the PEG ratio of 0.07 suggests that the stock may be undervalued relative to its growth potential, especially when compared to peers like Welspun Living, which has a PEG of 0.00. Notably, Raj Rayon has delivered a stock return of 4.33% over the past week, outperforming the Sensex's return of 1.62%, which may reinforce its fair valuation status.