Is Neelkanth overvalued or undervalued?

As of 24 July 2025, the valuation grade for Neelkanth has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 21.60, an EV to EBITDA ratio of 21.78, and a Price to Book Value of 2.25. These ratios suggest that Neelkanth is trading at a premium compared to its earnings and book value.
In comparison to its peers, Neelkanth's valuation appears particularly high when juxtaposed with PTC India, which has a PE ratio of 10.28 and an EV to EBITDA of 4.78, indicating a more attractive valuation. Similarly, Elitecon International's PE ratio of 348.74 further highlights Neelkanth's overvaluation within the trading and distribution industry. Notably, Neelkanth has outperformed the Sensex over the past year, with a stock return of 23.47% compared to the Sensex's 2.54%, but this does not mitigate its current overvaluation status.