Is Stratmont Indus. overvalued or undervalued?

As of 29 August 2025, the valuation grade for Stratmont Industries has moved from very expensive to expensive, indicating a slight adjustment in its perceived value. The company is currently considered overvalued, with a PE ratio of 184.38, an EV to EBITDA ratio of 70.19, and a Price to Book Value of 8.43. These ratios suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Stratmont's valuation stands out as particularly high; for instance, Elitecon International has a PE ratio of 752.77, while PTC India, which is categorized as very attractive, has a PE of just 8.35. The stark contrast in these ratios highlights that Stratmont is not only overvalued relative to its peers but also reflects a broader trend within the trading and distribution industry. Furthermore, despite a strong historical performance over the long term, recent stock returns have underperformed against the Sensex, with a year-to-date decline of 25.87% compared to a 2.14% gain in the index.