Is Somany Ceramics overvalued or undervalued?

As of 10 November 2025, the valuation grade for Somany Ceramics has moved from attractive to very attractive. The company is currently considered undervalued, with a PE ratio of 32.17, an EV to EBITDA of 12.87, and a Price to Book Value of 0.23. In comparison to its peers, Kajaria Ceramics has a significantly higher PE ratio of 45.71, while Cera Sanitary exhibits a PE of 31.08, indicating that Somany Ceramics is priced more favorably relative to these competitors.
Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -29.67% compared to the Sensex's gain of 6.91%, the underlying valuation metrics suggest that Somany Ceramics presents a compelling investment opportunity. The company's low PEG ratio of 0.00 further emphasizes its potential for growth relative to its valuation, reinforcing the conclusion that it is currently undervalued in the market.