Is Finolex Inds. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Finolex Industries has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios highlight this assessment, with a PE ratio of 28.37, an EV to EBITDA of 24.37, and a Price to Book Value of 2.22. Compared to its peers, Finolex's PE ratio is significantly lower than that of Supreme Industries at 57.34 and Astral at 78.35, both of which are categorized as very expensive.
Given the current valuation metrics and the peer comparison, Finolex Industries appears to be overvalued. Despite a recent stock return of 27.71% over the past month, it has underperformed the Sensex over the year, with a decline of 37.01% compared to the Sensex's 7.65% gain. This further reinforces the notion that the stock may not be a favorable investment at its current price of 220.75.