Is Vital Chemtech overvalued or undervalued?

As of 23 September 2025, the valuation grade for Vital Chemtech has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a PE ratio of 28.35, an EV to EBITDA ratio of 18.77, and a PEG ratio of 1.87, all of which are considerably high compared to industry norms.
In comparison to its peers, Vital Chemtech's PE ratio is lower than that of Solar Industries at 101.9 and Gujarat Fluoroch at 68.24, but it is still positioned in the very expensive category. Notably, Godrej Industries, classified as attractive, has a PE ratio of 39.42, suggesting that Vital Chemtech may not justify its current valuation amidst its peers. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -26.57% compared to the Sensex's gain of 6.45%, reinforcing the notion that it is overvalued in the current market environment.