Is Chembond Materi. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Chembond Materials has moved from attractive to very attractive. The company is currently considered undervalued. Key ratios include a PE ratio of 10.41, an EV to EBITDA of 8.61, and a ROCE of 16.85%. In comparison to peers, Chembond's PE ratio is significantly lower than Solar Industries, which stands at 107.88, and Gujarat Fluorochemicals at 70.49, both categorized as very expensive.
Despite recent stock performance showing a decline of 72.84% over the past year compared to a mere 0.05% return for the Sensex, the underlying valuation metrics suggest that Chembond Materials presents a compelling investment opportunity. With a PEG ratio of 0.00 and a dividend yield of 0.97%, the company’s financials indicate strong potential for future growth relative to its current price.