Is Vikram Thermo overvalued or undervalued?

As of 1 July 2025, the valuation grade for Vikram Thermo has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a PE ratio of 14.20, an EV to EBITDA of 10.96, and a PEG ratio of 0.47, which suggests that while the company is generating solid returns, it may not be priced appropriately in the market.
In comparison to its peers, Vikram Thermo's PE ratio is significantly lower than that of Solar Industries, which stands at 128.64, indicating a stark valuation disparity. Additionally, Godrej Industries, which is rated attractive, has a PE ratio of 41.44, further emphasizing Vikram Thermo's relative overvaluation. Despite the company's impressive historical returns, including a 770.14% increase over the past five years compared to the Sensex's 136.34%, the current price of 152.10 suggests that it may not be a favorable investment at this time.