Is Shahlon Silk overvalued or undervalued?

As of 9 October 2025, Shahlon Silk's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 67.23, an EV to EBITDA ratio of 12.17, and a Price to Book Value of 2.11. These ratios suggest that while the company may have strong growth potential, it is priced at a premium compared to its earnings and book value.
In comparison to its peers, Shahlon Silk's valuation stands out as relatively high, especially when compared to Trident, which has a PE ratio of 33.01 and an EV to EBITDA of 15.71, indicating that Shahlon Silk is significantly more expensive. Additionally, K P R Mill Ltd is categorized as very expensive with a PE of 41.66, further highlighting the premium Shahlon Silk commands in the market. Notably, Shahlon Silk has outperformed the Sensex in recent periods, with a year-to-date return of 23.76% compared to the Sensex's 5.16%, reinforcing its growth narrative despite the current fair valuation.