Is Atul overvalued or undervalued?

As of 14 October 2025, Atul's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 34.30, an EV to EBITDA of 17.80, and a PEG ratio of 0.68, suggesting that its growth prospects are reasonably priced relative to its earnings.
In comparison to its peers, Atul's valuation metrics stand out, particularly against Solar Industries, which has a significantly higher PE ratio of 99.77, and Gujarat Fluoroch, with a PE of 64.04. This positions Atul more attractively within the specialty chemicals sector, especially when considering its ROCE of 12.12% and ROE of 8.64%. Despite recent underperformance relative to the Sensex, with a year-to-date return of -16.33% compared to the Sensex's 4.98%, Atul's fair valuation suggests potential for recovery as market conditions improve.