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 trading at a low price relative to its growth potential.
In comparison to its peers, Bodal Chemicals stands out with its very attractive valuation, especially when juxtaposed with Sudarshan Chemicals, which is deemed expensive with a PE ratio of 122.71, and Meghmani Organics, rated fair with a PE of 111.34. Despite Bodal's recent stock performance lagging behind the Sensex, particularly with a 1Y return of -26.25% compared to the Sensex's -3.90%, its strong valuation metrics suggest that it may present a compelling investment opportunity moving forward.