Is Bodal Chemicals overvalued or undervalued?

As of 1 October 2025, the valuation grade for Bodal Chemicals has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 25.93, an EV to EBITDA of 9.61, and a PEG ratio of 0.03, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Bodal Chemicals stands out with a lower PE ratio than Sudarshan Chemicals, which is at 122.71 and deemed expensive, and Kiri Industries, which has a PE of 18.71 but is classified as risky. Additionally, Ultramarine Pigments and Heubach Colorant, both rated very attractive, have significantly lower PE ratios of 17.12 and 17.51, respectively. Despite Bodal Chemicals' recent stock performance lagging behind the Sensex, particularly over the past year with a decline of 26.25% compared to the Sensex's drop of only 3.90%, the current valuation metrics suggest that it presents a compelling investment opportunity.