Is Shiv Texchem overvalued or undervalued?

As of 17 October 2025, Shiv Texchem's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued based on its key financial ratios, including a PE ratio of 8.81, an EV to EBIT of 6.84, and an EV to EBITDA of 6.83. These figures suggest that the stock is trading at a significant discount compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Shiv Texchem's valuation stands out, particularly against Elitecon International, which is deemed very expensive with a PE ratio of 358.65, and MMTC, categorized as risky with a PE ratio of 144.23. Additionally, PTC India, considered very attractive, has a lower PE ratio of 7.81, further supporting the notion that Shiv Texchem is undervalued. The company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 44.05%, contrasting sharply with the Sensex's gain of 7.44%, reinforcing the undervaluation narrative.