Is Sirca Paints overvalued or undervalued?

As of 8 July 2025, the valuation grade for Sirca Paints has moved from fair to expensive, indicating that the company is currently overvalued. Key ratios highlight this assessment, with a PE ratio of 46.04, an EV to EBITDA ratio of 32.65, and a Price to Book Value of 6.46. Compared to peers, Sirca Paints' valuation stands out as higher than both Asian Paints, which has a PE of 60.75, and Berger Paints, which is considered fair with a PE of 57.52.
The analysis suggests that Sirca Paints is overvalued given its elevated ratios relative to industry peers. Despite a strong return performance, with a year-to-date return of 21.71% compared to the Sensex's 7.13%, the current valuation metrics do not support a favorable investment outlook at this price level.