Is 3M India overvalued or undervalued?

As of 3 November 2025, the valuation grade for 3M India has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE ratio of 56.85, an EV to EBITDA of 42.27, and a Price to Book Value of 16.19, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, 3M India's valuation stands out, with Adani Enterprises at a PE of 83.72 and Tata Chemicals at 60.36, both of which are also expensive but not as high as 3M India's ratios. Additionally, while SRF is also categorized as very expensive with a PE of 54.57, it still falls short of 3M India's valuation metrics. Notably, 3M India's recent stock performance has lagged behind the Sensex over the past year, with a return of -14.73% compared to the Sensex's 5.34%, reinforcing the notion of overvaluation.