Is Sanathan Textile overvalued or undervalued?

As of 7 November 2025, the valuation grade for Sanathan Textile has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 30.16, an EV to EBITDA of 22.16, and a Price to Book Value of 0.23, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Sanathan Textile's PE ratio is lower than K P R Mill Ltd, which stands at 43.65, but higher than Vardhman Textile, which has a PE ratio of 15.12 and is rated as attractive. The EV to EBITDA ratio of 22.16 also positions Sanathan Textile above Trident, which is rated fair with an EV to EBITDA of 15.62. Despite a strong year-to-date return of 34.97%, outperforming the Sensex's 6.50%, the company's overall valuation metrics suggest it is overvalued in the current market context.