Is Yash Chemex overvalued or undervalued?

As of 31 October 2025, Yash Chemex has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued based on its high PE ratio of 61.11 and EV to EBIT of 99.53, which significantly exceed the industry averages. In comparison, Godrej Industries, which is rated attractive, has a PE ratio of 36.92 and an EV to EBITDA of 29.41, indicating a more favorable valuation.
Despite its high valuation metrics, Yash Chemex shows a low Price to Book Value of 0.27 and a PEG ratio of 0.14, suggesting potential growth at a reasonable price. However, the low ROCE of 0.44% and ROE of 0.45% further reinforce the notion that the stock may be overvalued relative to its earnings performance. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 105.84% compared to the Sensex's 7.42%, but this does not negate the valuation concerns highlighted by its ratios.