Is Shri Ahimsa overvalued or undervalued?

As of 15 July 2025, the valuation grade for Shri Ahimsa has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 18.25, an EV to EBITDA ratio of 13.38, and an ROE of 26.25%. In comparison to its peers, Solar Industries has a much higher PE ratio of 114.97, while Godrej Industries, which is rated attractive, has a PE of 38.46, highlighting the relative overvaluation of Shri Ahimsa.
Despite its strong financial metrics, including a robust ROCE of 32.01%, the company's valuation appears excessive when compared to industry standards. The recent stock performance shows a 1-week return of 13.81%, significantly outperforming the Sensex, which declined by 1.28%. This short-term gain, however, does not mitigate the overall overvaluation concern based on the current ratios and peer comparisons.