Is Emami overvalued or undervalued?

As of 6 November 2025, the valuation grade for Emami has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 27.94, an EV to EBITDA ratio of 21.76, and a PEG ratio of 2.81. In comparison to its peers, Emami's valuation appears more reasonable; for instance, Hindustan Unilever has a PE ratio of 54.11, while Nestle India stands at 81.85, both categorized as very expensive.
Despite the fair valuation, Emami has underperformed relative to the Sensex, with a year-to-date return of -12.89% compared to the Sensex's 6.62%. This performance, along with a solid ROCE of 40.57% and ROE of 29.93%, suggests that while the stock is fairly valued, it may face challenges in regaining momentum in the near term.