Is Mehul Colours overvalued or undervalued?

As of 24 October 2025, the valuation grade for Mehul Colours has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 16.30, an EV to EBITDA of 12.83, and a ROE of 32.24%.
In comparison to peers, Sudarshan Chem has a significantly higher PE ratio of 109.36, while Ultramarine Pigments, which is rated very attractive, has a PE of 17.5. This indicates that Mehul Colours is priced higher relative to its earnings compared to some of its peers, suggesting a lack of value. Additionally, the stock has underperformed the Sensex over the past week, with a return of -1.68% compared to the Sensex's 0.31%.