Is Libas Consumer overvalued or undervalued?

As of 26 June 2025, the valuation grade for Libas Consumer has moved from very attractive to attractive. The company is currently assessed as undervalued, with a PE ratio of 14.09, a Price to Book Value of 0.46, and an EV to EBITDA of 10.06. In comparison to peers, K P R Mill Ltd is considered very expensive with a PE ratio of 46.76, while Vardhman Textile is priced at a PE of 15.95, indicating that Libas Consumer offers a more favorable valuation relative to these competitors.
Despite the recent stock performance showing a 4.96% return over the past week compared to the Sensex's 3.05%, the longer-term outlook reveals a decline of 21.32% over the past year, contrasting sharply with the Sensex's 7.04% gain. This suggests that while the company is currently undervalued, it has faced significant challenges that investors should consider when evaluating future prospects.