line
Use App
​
HomeStocksMarketOvervalued Stocks

Overvalued Stocks

Last Updated on

Here you get all stocks that appear overvalued compared to their sector, meeting the following conditions:

List of Stocks Priced too High

CSV
No Data

View By:

Name
LTP
Change %
Volume
Market Cap (Cr.)arrow
PE Ratio
Industry PE
52W High
52W Low
1M Returns
3M Returns
1 Yr Returns
3 Yr Returns
5 Yr Returns
PB Ratio
Dividend Yield
ROE
ROCE
EPS
50 DMA
200 DMA
RSI
MTF
Margin Pledge

B

Bharat Forge

1,399.70

0.39%3,38,949₹ 66,91863.6019.82 1,460.20919.106.06%23.14%1.49%65.17%154.82%7.330.59%12.70%16.45%22.021,313.581,210.4154.5076.00%87.50%

S

Sequent Scientific

199.81

-3.67%16,22,369₹ 5,028111.7517.73 257.85117.35-7.68%8.70%0.19%107.27%18.51%7.47--9.58%-214.31180.3839.9750.00%75.00%

R

Ramco Systems

601.95

2.63%1,66,423₹ 2,249266.1940.32 666.30270.00-5.91%40.53%26.62%122.08%23.09%7.12----576.26435.5449.36--

S

Solara Active Pharma Sciences

551.35

0.24%41,915₹ 1,993318.9317.73 813.00442.80-2.02%-17.06%-31.24%32.36%-54.09%1.64----581.68564.7347.4850.00%75.00%

P

Pasupati Acrylons

55.19

-1.53%1,46,723₹ 49212.203.44 63.5038.647.14%30.84%25.40%63.04%49.36%1.26--10.33%-49.9848.1153.47--

Showing 5 of 5 results

Please Note:

  • PE Ratio: Share Price/Earning Per Share
  • PB Ratio: Market Cap/Book Value
  • ROE: Net Income/Shareholder's Equity
  • ROCE: Earning Before Interest & Tax (EBIT)/Capital Employed
  • EPS: (Net Income-Preferred Dividend)/Weighted Average Number of Shares Outstanding
  • 50 DMA: Simple Moving Average of the past 50 days closing prices for a stock.
  • 200 DMA: Simple Moving Average of the past 200 days closing prices for a stock.
  • RSI: Relative Strength Index (14) is a momentum indicator to measure price changes to analyse overbought/oversold conditions.
  • MTF: % Amount Funded by Dhan.
  • Margin Pledge: % Collateral Benefit for Additional Margin.

*The scrips mentioned above are just for research purpose and not recommendations. Please do your own due diligence before investing.


What are the most accurate indicators?

Overvalued stocks trade at prices significantly higher than their intrinsic or fair value. The most accurate indicators include:

  • High Price-to-Earnings (P/E) Ratio: A stock's P/E far above its industry peers or its historical average suggests overvaluation, signaling the market prices in overly optimistic future earnings.
  • Elevated P/B and P/S Ratios: Price-to-Book (P/B) and Price-to-Sales (P/S) Ratios above sector levels indicate pricing beyond fundamental asset or revenue values.
  • Relative Strength Index (RSI): Momentum indicators like RSI above 70 or 80 signal that the stock is overbought, often preceding a price correction.
  • Divergence between Price and Earnings Growth: When stock prices rise faster than earnings or fundamental growth, this signals potential overvaluation.
  • Low or Declining Return on Equity (ROE): Suggests the company is not generating adequate profits relative to its market valuation.
  • Excessive Hype or Retail Buzz: A surge in popularity on social media or trading forums often inflates prices without underlying business improvement.

How to identify good ones?

Identifying good overvalued stocks requires considering the following factors:

  • Robust Fundamentals: Assessing the presence of robust fundamentals such as consistently solid revenue growth, high-quality and sustainable earnings (not one-offs), and reasonable, manageable debt levels.
  • Strong Free Cash Flow: Focus on companies that generate strong and consistent free cash flow. This suggests they possess the financial health and flexibility to maintain operations, fund future growth, and reward shareholders, even when priced at a premium.
  • Competitive Moats & Innovation: Prioritize companies with proven scalability, durable competitive advantages, and clear innovation plans that can sustain future growth and market leadership, justifying higher multiples.
  • Technical Strength Confirmation: Price consistently above key moving averages and positive momentum indicators like RSI support ongoing strength despite high valuation.
  • Market Sentiment & Investor Confidence: Acknowledge investor optimism and confidence while distinguishing between genuine growth and speculative hype.
  • Validated Growth Narratives: Confirm the growth story behind premium multiples using industry trends, competitive position, and innovation plans.

How to analyse?

The analysis of overvalued stocks requires a comprehensive combination of both technical and fundamental analysis. This includes:

  • Financial Statement Scrutiny: Assess debt structure, stability of cash flows, and revenue consistency to evaluate if pricing premiums are justified.
  • Valuation Multiple Comparison: Analyze P/E, P/B, and PEG ratios relative to historical data and industry averages to detect valuation anomalies.
  • Discounted Cash Flow (DCF) Modeling: Use DCF to estimate intrinsic value and identify gaps between market price and fundamental worth.
  • Technical Momentum and Overbought Signals: Monitor RSI, MACD, and other momentum indicators for signs of overbought conditions or trend reversals.
  • Volume and Price Divergence: Track price activity alongside volume patterns to detect weakening momentum or early warning signs.
  • Macro and Market Risk Factors: Consider interest rates, economic cycles, and market sentiment that might influence the sustainability of high valuations.
  • Risk Assessment: Evaluate regulatory, economic, or sector-specific risks that could pressure earnings and trigger price corrections.

Where do most investors or traders go right/wrong?

Successful investors in overvalued stocks often exhibit disciplined risk management, avoid chasing hype, and recognize when to exit. They leverage multiple valuation metrics and maintain objectivity, avoiding emotional decisions based on short-term price moves. Correct timing of entry and exit, often on technical signals such as momentum weakening or volume drying up, helps preserve gains. Balancing fundamentals, technicals, and emotional control is essential for success with overvalued stocks.Mistakes commonly include panic-selling during downturns, holding overvalued stocks too long, hoping for further gains, or overconfidence leading to poor trade decisions. Many traders ignore fundamental deterioration and fail to adjust positions accordingly, turning potential profits into losses. Overreliance on a single indicator without supporting evidence also leads to errors. Effective investors avoid pitfalls by diversifying, consulting professionals, and adhering to a long-term or systematic strategy rather than speculation based on market noise.

Frequently Asked Questions

To identify overvalued stocks, look for companies with high price-to-earnings ratios compared to their industry peers. Analyze their financial statements, growth projections, and market conditions to understand why they may be trading at inflated prices.
Investing in overvalued stocks can lead to opportunities for quick profits if market sentiment shifts. If prices correct, investors may benefit from selling before the decline, but this requires careful timing and market knowledge.
These stocks carry significant risks, as they may experience sharp price drops when the market adjusts. Overvaluation can indicate underlying problems, and investors could face substantial losses if they buy in without understanding the risks.
Investing in overvalued stocks can be risky, as prices may adjust downward to reflect true value. Beginners should focus on understanding company valuations and consider investments that align with their financial goals and risk tolerance.
Overvalued stocks are priced higher than their perceived true value, which may lead to price corrections. Investing in them can be risky, so investors should carefully assess whether the potential returns justify the risks involved.

Invest & Trade with a Trading
Platform That's icon

Open your Dhan Account in minutes!


border
logo

Join our Community

community logo

Follow us on

twitter
telegram
Linkedin
youtube
instagram
facebook

built with love
for Indians who love to invest & trade

raise

We are part of Raise Financial Services

raise
raise

Explore  |  Sitemap


*All securities mentioned on this website are exemplary and not recommendatory.

*Current prices on the website are delayed by 15 mins, login to check live prices.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2025 Raise Securities Private Limited (formerly Moneylicious Securities Private Limited). All rights reserved. CIN: U74999MH2012PTC433549 Raise Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016 | SEBI Research Analyst Registration No: INH000023357
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered & Corporate Office: Unit No. 2201, 22nd Floor, Gold Medal Avenue, S.V. Road, Beside Patel Petrol Pump, Piramal Nagar, Goregaon West, Mumbai – 400104, Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Raise Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


Disclaimer: All communications with the client via chat, phone, or email are for support purposes only. Any commitments or statements made by the agent (human or virtual) shall not be binding on the company.


DHAN is a brand owned by Raise Securities Private Limited. All DHAN clients are registered under Raise Securities Private Limited. Clients are advised to refer to our company as Raise Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Investors should be cautious on unsolicited emails and SMS advising to buy, sell or hold securities and trade only on the basis of informed decision. Investors are advised to invest after conducting appropriate analysis of respective companies and not to blindly follow unfounded rumours, tips etc. Further, you are also requested to share your knowledge or evidence of systemic wrongdoing, potential frauds or unethical behaviour through the anonymous portal facility provided on BSE & NSE website. Issued in the interest of the investors.


Raise Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | Investor Charter for Research Analyst | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
MCXCCL Client Collateral details

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Grievances RA | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Referral Terms & Conditions | Saarthi 2.0 Mobile App for Investors