Is Rajasthan Gases overvalued or undervalued?

As of 14 November 2025, the valuation grade for Rajasthan Gases has moved from very expensive to risky. This indicates a significant shift in the company's perceived value, suggesting that it may be overvalued at its current price of 48.00. The company is currently assessed as overvalued based on its high PE ratio of 52.56 and a negative EV to EBIT of -388.44, which raises concerns about its profitability and operational efficiency.
In comparison with peers, Rajasthan Gases shows stark contrasts; for instance, Linde India has a PE ratio of 95.6, while Petronet LNG stands at a much more attractive PE of 11.19. The negative EV to EBITDA ratio further highlights the company's struggles relative to its competitors. Additionally, despite a recent strong performance in the short term, with a 1-week return of 11.55% compared to the Sensex's 1.62%, the year-to-date return of -25.79% against the Sensex's 8.22% suggests a troubling trend for long-term investors. Overall, Rajasthan Gases appears to be overvalued in its current state.