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, Solar Industries is very expensive with a PE of 108.55, while Godrej Industries is attractive with a PE of 38.88, highlighting Chembond's relative value in the specialty chemicals sector.
Despite recent stock performance showing a significant decline of 66.22% year-to-date compared to a 4.25% gain in the Sensex, the company's strong financial ratios suggest it may be undervalued. The EV to Sales ratio of 0.68 further supports this assessment, indicating that the market may not fully recognize the company's potential relative to its peers.