Is Valiant Organics overvalued or undervalued?

As of 13 October 2025, the valuation grade for Valiant Organics has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. Despite this upgrade, the company appears to be overvalued based on its current financial ratios. The PE ratio stands at an exceptionally high 168.69, while the EV to EBITDA ratio is 17.49, both of which are substantially higher than many peers in the specialty chemicals sector. Additionally, the ROCE is only 1.85%, and the ROE is negative at -0.52%, suggesting inefficiencies in generating returns.
In comparison to its peers, Valiant Organics' valuation metrics are strikingly elevated. For instance, Sun Pharma has a PE ratio of 34.9, while Dr. Reddy's Labs, which is also rated very attractive, has a PE of 18.54. Furthermore, the PEG ratio for Valiant is 1.27, which is higher than Cipla's 1.1, indicating that Valiant's growth prospects may not justify its current valuation. Given these factors, Valiant Organics is considered overvalued, particularly in light of its poor stock performance relative to the Sensex over various time frames, including a 1-year decline of 22.93% compared to the Sensex's modest gain of 1.16%.