Is New Light Indust overvalued or undervalued?

As of 10 October 2025, the valuation grade for New Light Industries has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, with a PE ratio of 14.41, an EV to EBIT of 15.68, and an ROE of 9.59%. In comparison to its peers, Vardhman Textile, which is also attractive, has a lower PE ratio of 13.63, while K P R Mill Ltd is deemed very expensive with a PE of 41.5.
Despite the recent downgrade in valuation grade, New Light Industries has shown strong performance relative to the Sensex, particularly over the past week and month, with returns of 44.59% and 33.53%, respectively. This performance, coupled with its attractive valuation metrics compared to peers, reinforces the conclusion that the company remains undervalued in the current market landscape.