Is Vidhi Specialty overvalued or undervalued?

As of 31 May 2023, the valuation grade for Vidhi Specialty has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued, with a PE ratio of 48.06, a Price to Book Value of 6.93, and an EV to EBITDA of 31.06. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Vidhi Specialty's PE ratio is notably higher than Sudarshan Chemicals, which has a PE of 71.32, and significantly above Kiri Industries, which stands at 13.72. This disparity highlights the overvaluation of Vidhi Specialty within the specialty chemicals sector. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -19.10% compared to the Sensex's 5.59%, further reinforcing the notion that the stock is overvalued.