Is Tuni Text. Mills overvalued or undervalued?

As of 14 November 2025, the valuation grade for Tuni Text. Mills has moved from very attractive to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued, with a PE ratio of 71.43, an EV to EBITDA of 28.51, and a Price to Book Value of 5.19. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Tuni Text. Mills' valuation metrics stand out unfavorably; for instance, K P R Mill Ltd has a PE ratio of 43.91, and Trident, which is rated fair, has a PE of 32.4. Additionally, Tuni's ROCE of 8.28% and ROE of 7.26% further highlight its underperformance relative to the higher returns typically expected in the industry. While the stock has shown strong returns over the past five years, outperforming the Sensex, its recent performance has been lackluster, with a year-to-date decline of 23.33% compared to the Sensex's 8.22% gain.