Is Rel. Chemotex overvalued or undervalued?

As of 12 May 2025, the valuation grade for Rel. Chemotex has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as overvalued based on its financial metrics. Key ratios include a PE ratio of 35.20, an EV to EBITDA of 11.97, and a PEG ratio of 1.47, which suggest that the stock may be priced higher than its growth prospects justify.
In comparison to its peers, K P R Mill Ltd is classified as very expensive with a PE ratio of 47.51, while Trident is rated fair with a PE of 42.6. This positions Rel. Chemotex in a relatively better light, yet still indicates overvaluation when considering its lower return on equity (ROE) of 2.99% and return on capital employed (ROCE) of 3.97%. Furthermore, the stock has underperformed against the Sensex over the past year, with a return of -9.13% compared to the Sensex's 7.58%, reinforcing the notion of overvaluation.