Is Vital Chemtech overvalued or undervalued?

As of 18 September 2025, the valuation grade for Vital Chemtech has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 29.62, an EV to EBITDA ratio of 19.54, and a PEG ratio of 1.95. These ratios suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Vital Chemtech's valuation stands out, particularly against Solar Industries, which has a much higher PE ratio of 104.86, and Godrej Industries, which is considered attractive with a PE of 40.62. The overall peer comparison indicates that while Vital Chemtech is categorized as very expensive, other companies in the sector are also trading at high valuations, but with varying degrees of attractiveness. Notably, Vital Chemtech has underperformed the Sensex, with a year-to-date return of -23.03% compared to the Sensex's 7.52%, reinforcing the notion that the stock may be overvalued in the current market context.