Is Rulka overvalued or undervalued?

As of 25 September 2025, Rulka's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 23.93, while the EV to EBITDA ratio is 14.49, both of which are significantly higher than peers like Apar Industries, which has a PE ratio of 39.65 and an EV to EBITDA of 21.3, suggesting that Rulka is not competitively priced in its sector.
The company's financial ratios reflect underlying concerns, with a ROCE of 9.54% and a ROE of 6.62%, which are relatively low compared to industry standards. Additionally, Rulka's stock has underperformed significantly, with a year-to-date return of -55.49%, contrasting sharply with the Sensex's gain of 5.27% over the same period. Overall, Rulka appears to be overvalued given its current financial performance and comparison with peers.