Is Silkflex Polymer overvalued or undervalued?

As of 19 September 2025, the valuation grade for Silkflex Polymer has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on key financial metrics. The price-to-earnings (PE) ratio stands at 14.92, while the enterprise value to EBITDA ratio is 11.96, both of which are relatively high compared to peers. Notably, the return on equity (ROE) is 19.65%, which is commendable, yet does not sufficiently justify the current valuation levels.
In comparison to its peers, Silkflex Polymer's PE ratio is significantly higher than that of PTC India, which has a PE of 8.32 and is rated as very attractive. Additionally, Elitecon International is categorized as very expensive with a staggering PE of 426.6, further emphasizing the disparity in valuation within the sector. Given these ratios and the overall market context, Silkflex Polymer appears to be overvalued, despite a recent year-to-date stock return of 14.29% compared to the Sensex's 7.11%.