Is Atul overvalued or undervalued?

As of 20 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 based on its financial metrics. Key ratios include a PE ratio of 32.23, an EV to EBITDA of 5.61, and a PEG ratio of 0.74, which suggests that the stock is reasonably priced relative to its growth potential.
In comparison to its peers, Atul's PE ratio is significantly lower than Solar Industries, which is at 101.25, and Gujarat Fluorochemicals at 65.8, both of which are considered very expensive. Conversely, Godrej Industries, rated as attractive, has a PE of 36.75, further supporting Atul's fair valuation status. Despite recent underperformance relative to the Sensex, with a year-to-date return of -14.72% compared to the Sensex's 7.97%, the company's valuation metrics suggest it is not overvalued, making it a potentially appealing investment in the specialty chemicals sector.