Is Rajasthan Gases overvalued or undervalued?

Jun 09 2025 04:15 PM IST
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As of June 3, 2025, Rajasthan Gases is considered very expensive and overvalued with a PE ratio of 46.16, a Price to Book Value of 9.02, and an EV to EBITDA ratio of 40.33, significantly higher than its peers, while also showing a year-to-date return of -33.83% compared to the Sensex's gain of 5.62%.
As of 3 June 2025, the valuation grade for Rajasthan Gases has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 46.16, a Price to Book Value of 9.02, and an EV to EBITDA ratio of 40.33. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Rajasthan Gases stands out with a notably high PE ratio of -322.87, while Linde India Ltd. has a PE of 139.48, and Petronet LNG Ltd. is much lower at 11.56, indicating a stark contrast in valuation. Additionally, the company's recent performance shows a year-to-date return of -33.83%, while the Sensex has gained 5.62%, further reinforcing the notion that Rajasthan Gases is overvalued in the current market environment.
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