Is Indian Emuls overvalued or undervalued?

As of 17 November 2025, the valuation grade for Indian Emuls has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 14.78, an EV to EBIT of 12.76, and an ROCE of 16.18%.
In comparison with peers, Indian Emuls has a lower PE ratio than Solar Industries, which stands at 95.31, and Gujarat Fluoroch at 57.85, indicating that while it is expensive, it is not as overvalued as these companies. However, it is still more expensive than Godrej Industries, which is rated attractive with a PE of 37.63. The recent performance of Indian Emuls has been poor, with a year-to-date return of -53.13%, significantly underperforming the Sensex, which has returned 10.02% in the same period.