Is Neelam Linens overvalued or undervalued?

As of 17 November 2025, the valuation grade for Neelam Linens has moved from expensive to attractive, indicating a significant shift in its market perception. The company is currently assessed as undervalued, with a PE ratio of 16.22, an EV to EBITDA of 6.38, and a ROCE of 13.76%. In comparison to its peers, K P R Mill Ltd is categorized as very expensive with a PE ratio of 44.24, while Trident, which is also attractive, has a PE ratio of 32.69, highlighting Neelam Linens' relative value.
Despite a challenging year-to-date performance with a return of -62.31% compared to the Sensex's 10.02%, the current valuation metrics suggest that Neelam Linens presents a compelling investment opportunity. The company's low EV to Sales ratio of 0.59 further supports the argument for its undervaluation, especially when compared to peers like Welspun Living, which is fairly valued at a PE of 37.99. Overall, Neelam Linens appears to be a strong candidate for investment given its attractive valuation relative to the broader market and its peers.