Is Vikram Thermo overvalued or undervalued?

As of 30 June 2025, the valuation grade for Vikram Thermo has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE ratio of 15.07, an EV to EBITDA of 11.62, and a PEG ratio of 0.49, which suggests that while the company has strong earnings growth potential, its current price may not justify the valuation.
In comparison to its peers, Vikram Thermo's PE ratio is notably lower than that of Solar Industries, which stands at 131.62, and significantly higher than Godrej Industries, which is rated attractive with a PE of 42.82. This disparity highlights that while Vikram Thermo is positioned within a competitive market, its valuation does not align favorably with peers. Additionally, despite a strong historical performance with a 3-year return of 284.52%, recent trends show a decline, with a year-to-date return of -7.71% compared to a 7.00% increase in the Sensex, further reinforcing the notion that the stock may be overvalued at its current price of 161.50.