Is Chembond Materi. overvalued or undervalued?

As of 20 August 2025, the valuation grade for Chembond Materials has moved from very attractive to attractive, indicating a shift in market perception. The company is currently deemed undervalued based on its financial metrics. Key ratios include a PE ratio of 10.46, an EV to EBITDA of 8.65, and a ROCE of 16.85%.
In comparison to its peers, Chembond's valuation appears favorable; for instance, Godrej Industries has a significantly higher PE ratio of 43.02, while Solar Industries is rated as very expensive with a PE ratio of 103.73. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -69.66% compared to the Sensex's 4.76%, the underlying financial ratios suggest that Chembond Materials presents a compelling investment opportunity within the specialty chemicals sector.