Is Neelam Linens overvalued or undervalued?

As of 10 October 2025, Neelam Linens has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics, which include a PE ratio of 14.82, an EV to EBITDA of 9.62, and a Price to Book Value of 1.01. These ratios suggest that the company's valuation is in line with its earnings and asset base.
In comparison to its peers, Neelam Linens stands out with a PE ratio that is significantly lower than K P R Mill Ltd, which has a PE of 41.5, and Trident, which has a PE of 33.16. Additionally, Vardhman Textile, considered attractive, has a PE of 13.63, indicating that Neelam Linens is competitively positioned within the industry. Despite recent underperformance relative to the Sensex, with a year-to-date return of -65.56% compared to the Sensex's 6.94%, the company's current valuation suggests it may be a more stable option in a volatile market.