Is Indian Emuls overvalued or undervalued?

As of 10 October 2025, the valuation grade for Indian Emuls has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued based on its financial ratios, with a PE ratio of 16.31, an EV to EBITDA of 12.35, and an EV to Sales ratio of 2.40. These metrics suggest that the stock is trading at a premium compared to its earnings and sales.
In comparison to its peers, Indian Emuls stands out as overvalued when looking at companies like Godrej Industries, which has a PE ratio of 35.91 and an EV to EBITDA of 28.95, indicating a more attractive valuation. Additionally, Solar Industries, with a PE ratio of 101.06 and an EV to EBITDA of 62.19, further emphasizes the high valuation of Indian Emuls within the sector. The company's recent stock performance has been notably poor, with a year-to-date return of -48.25%, contrasting sharply with the Sensex's positive return of 6.94% during the same period, reinforcing the overvaluation narrative.