Is Chembond Materi. overvalued or undervalued?

As of 25 July 2025, Chembond Materials has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 9.94, an EV to EBITDA ratio of 7.94, and a ROCE of 20.82%. In comparison to its peers, Chembond's valuation metrics stand out; for instance, Solar Industries has a PE ratio of 108.55, while Godrej Industries has a PE of 38.88, both indicating that Chembond is trading at a significant discount relative to these competitors.
Despite the recent downturn in stock performance, with a year-to-date return of -66.22% compared to the Sensex's 4.25%, the underlying financial ratios suggest that Chembond Materials presents a compelling investment opportunity. The company's solid ROE of 17.42% further supports its potential for growth, reinforcing the view that it is currently undervalued in the specialty chemicals sector.