Is Rishi Techtex overvalued or undervalued?

As of 1 October 2025, Rishi Techtex's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a PE ratio of 13.51, an EV to EBITDA of 6.52, and a PEG ratio of 0.14, all suggesting that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Rishi Techtex stands out with a lower PE ratio than Garware Hi Tech, which is considered expensive at 22.03, and a more favorable EV to EBITDA than AGI Greenpac, which is very attractive at 9.28. This positioning reinforces the undervaluation narrative, especially given the company's solid ROCE of 10.02% and ROE of 7.53%. Despite recent stock performance lagging behind the Sensex over the past year, the long-term returns of 201.35% over five years highlight the potential for recovery and growth in value.