Is Mehul Colours overvalued or undervalued?

As of 24 October 2025, the valuation grade for Mehul Colours has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. The company is currently considered overvalued. Key ratios include a PE ratio of 16.30, an EV to EBITDA of 12.83, and a ROCE of 41.48%.
In comparison to its peers, Mehul Colours' PE ratio is significantly lower than Sudarshan Chemical's 109.36, but higher than Ultramarine Pigments' 17.5, which is rated very attractive. The EV to EBITDA ratio also positions Mehul Colours above Ultramarine Pigments, which has a ratio of 11.31, further emphasizing its overvaluation. Notably, while the stock has underperformed the Sensex in the past week, it has outperformed over the past month, suggesting some resilience despite its current valuation concerns.