Is Mafatlal Inds. overvalued or undervalued?

As of 14 May 2025, Mafatlal Industries has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 8.94, a Price to Book Value of 1.25, and an EV to EBITDA ratio of 12.26. These figures suggest that Mafatlal is trading at a significant discount compared to its peers, particularly when contrasted with K P R Mill Ltd, which has a PE ratio of 47.51, and Trident, which has a PE of 42.6.
In addition to its attractive valuation, Mafatlal's ROE stands at 14.04%, indicating strong profitability relative to equity. The company's recent stock performance has also shown resilience, with a 3-year return of 215.55%, significantly outperforming the Sensex's 49.17% over the same period. Overall, Mafatlal Industries presents a compelling investment opportunity given its favorable valuation metrics and strong historical performance.