Is Shantai Indust. overvalued or undervalued?

As of 14 November 2025, Shantai Industries has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 46.86, an EV to EBIT of 10.93, and a ROE of 3.23%. In comparison to its peers, Shantai's PE ratio is slightly lower than K P R Mill Ltd at 43.91 but significantly higher than Trident, which has a PE of 32.4, indicating a premium valuation relative to its industry.
The company's financial metrics highlight its overvaluation, especially given its low ROCE of 2.88% and the absence of a dividend yield. While Shantai has outperformed the Sensex over the past three years with a return of 57.3% compared to the Sensex's 37.22%, its long-term performance has been less favorable, with a 10-year return of -92.71% against the Sensex's 230.19%. This suggests that despite recent gains, the stock's current valuation may not be sustainable in the long run.