Is Sreeleathers overvalued or undervalued?

As of 7 November 2025, Sreeleathers has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 24.93, an EV to EBITDA ratio of 17.51, and a ROE of 4.52%. In comparison, peers such as Elitecon International and Lloyds Enterprises have significantly higher PE ratios of 378.62 and 30.04, respectively, indicating that Sreeleathers is trading at a premium relative to its industry.
Despite a recent stock performance that has lagged behind the Sensex, with a year-to-date return of -12.23% compared to the Sensex's 6.50%, the valuation metrics suggest that the current price of 225.00 is not justified by its earnings potential. The company's low ROCE of 7.04% further supports the conclusion that Sreeleathers is overvalued in the current market environment.