Is Marico overvalued or undervalued?

As of 25 September 2025, the valuation grade for Marico has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 54.70, an EV to EBITDA of 41.37, and a PEG ratio of 5.66. These figures suggest that Marico's stock price is not aligned with its earnings growth potential.
In comparison to its peers, Marico's PE ratio is lower than Hindustan Unilever's 56.06 and Nestle India's 75.21, but still significantly high relative to the industry average. Other competitors like Britannia Industries and Dabur India also show expensive valuations with PE ratios of 65.48 and 50.40, respectively. Despite a positive year-to-date return of 9.74% compared to the Sensex's 3.87%, the overall valuation metrics indicate that Marico is overvalued in the current market environment.