Is Neelam Linens overvalued or undervalued?

As of 13 October 2025, the valuation grade for Neelam Linens has moved from fair to expensive, indicating a shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 14.82, an EV to EBITDA of 9.62, and a Price to Book Value of 1.01, which suggest that the stock is trading at a premium compared to its earnings and asset values.
In comparison to its peers, Neelam Linens' valuation stands out as expensive, especially when juxtaposed with K P R Mill Ltd, which has a significantly higher PE Ratio of 41.09, and Trident, which is considered fair with a PE of 32.93. Recent performance shows that Neelam Linens has underperformed the Sensex, with a year-to-date return of -65.56% compared to the Sensex's 6.69%, further reinforcing the notion that the stock may be overvalued in the current market environment.