Is Sanathan Textile overvalued or undervalued?

As of 6 November 2025, the valuation grade for Sanathan Textile has moved from attractive to very expensive. This indicates a significant shift in the company's perceived value, suggesting that it is currently overvalued. Key ratios reflect this sentiment, with a PE ratio of 29.44, an EV to EBIT of 24.35, and an EV to EBITDA of 19.34, all of which are elevated compared to industry norms.
In comparison to peers, K P R Mill Ltd has a much higher PE ratio of 43.81, while Trident, which is rated fair, has a PE of 32.8. This highlights that Sanathan Textile's valuation is not only high relative to its own historical performance but also compared to its peers. Additionally, while the company's stock has outperformed the Sensex year-to-date with a return of 31.78% versus 6.62%, the overall valuation suggests caution for potential investors.