Is Mafatlal Inds. overvalued or undervalued?

As of 10 November 2025, Mafatlal Industries has moved from a very attractive to an attractive valuation grade. The company appears to be undervalued based on its current metrics. Key ratios include a PE ratio of 10.76, a price to book value of 0.15, and a negative EV to EBIT of -10.35, which indicates significant concerns regarding profitability.
When compared to peers, Mafatlal's valuation stands out; for instance, K P R Mill Ltd is deemed very expensive with a PE ratio of 42.57, while Vardhman Textile, which is also attractive, has a PE ratio of 15. This suggests that Mafatlal is trading at a significant discount relative to its peers. Additionally, despite recent stock performance showing a decline of 10.31% over the past week compared to a slight drop in the Sensex, the longer-term returns of 134.93% over three years and 928.73% over five years indicate strong growth potential, reinforcing the undervaluation narrative.