Is Neelam Linens overvalued or undervalued?

As of 10 October 2025, Neelam Linens has moved from an expensive valuation grade to fair. The company is currently fairly valued, with a PE ratio of 14.82, an EV to EBITDA of 9.62, and a Price to Book Value of 1.01. In comparison to peers, K P R Mill Ltd is very expensive with a PE of 41.5, while Trident is also fairly valued with a PE of 33.16.
Despite its fair valuation, Neelam Linens has underperformed significantly compared to the Sensex, with a year-to-date stock return of -65.56% against the Sensex's 6.94%. This stark contrast highlights the challenges the company faces within the garments and apparels industry, despite its current valuation metrics suggesting a fair position in the market.