Is Indian Emuls overvalued or undervalued?

As of 1 October 2025, the valuation grade for Indian Emuls has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 12.42, an EV to EBITDA of 9.71, and a ROCE of 16.18%.
In comparison to its peers, Indian Emuls has a lower PE ratio than Solar Industries, which stands at 96.75, and Gujarat Fluoroch at 65.59, both categorized as very expensive. This suggests that while Indian Emuls is expensive, it is significantly less so than some of its peers. Additionally, the company's recent stock performance has underperformed the Sensex, with a year-to-date return of -40.93% compared to the Sensex's 5.04%, reinforcing the notion of overvaluation.