Is Mehul Colours overvalued or undervalued?

As of 3 October 2025, the valuation grade for Mehul Colours has moved from expensive to very expensive. This indicates a significant shift in the market's perception of the company's value. Based on the analysis, Mehul Colours is currently overvalued. The company's PE ratio stands at 17.07, while its EV to EBITDA ratio is 13.44, and the EV to Sales ratio is 4.06, all suggesting a premium valuation compared to industry norms.
In comparison to its peers, Mehul Colours' valuation appears excessive. For instance, Sudarshan Chemicals is rated as expensive with a PE ratio of 121.76, while Ultramarine Pigments is considered very attractive with a PE of 17.21. Notably, the PEG ratio for Mehul Colours is 0.00, indicating no growth expectations factored into its valuation. Additionally, while Mehul Colours has shown strong returns over the past week and month, outperforming the Sensex, the overall valuation metrics suggest that the stock is not justified at its current price of 89.00.