Is SPL Industries overvalued or undervalued?

As of 14 August 2025, the valuation grade for SPL Industries has moved from fair to risky, indicating a concerning shift in its financial health. The company is currently assessed as overvalued, particularly in light of its key ratios: a PE ratio of 12.66, an EV to EBITDA of 31.99, and a ROE of only 3.89%. These figures suggest that the stock may not be justifying its current price given the underlying performance metrics.
In comparison to its peers, SPL Industries' valuation stands out unfavorably. For instance, K P R Mill Ltd is categorized as very expensive with a PE ratio of 39.62, while Trident is rated fair with a PE ratio of 32.66. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -40.81%, significantly underperforming the Sensex's positive return of 3.15% during the same period. This combination of high valuation ratios and poor relative performance reinforces the conclusion that SPL Industries is currently overvalued.