Is Chembond Materi. overvalued or undervalued?

As of 15 September 2025, the valuation grade for Chembond Materials has moved from attractive to very attractive. The company is currently undervalued based on its financial metrics. Key ratios include a PE ratio of 10.48, an EV to EBITDA of 8.68, and a ROCE of 16.85%.
In comparison to its peers, Chembond's valuation stands out, especially against Solar Industries, which has a PE ratio of 103.8, and Godrej Industries at 41.59. The significant disparity in these ratios indicates that Chembond is trading at a much lower valuation relative to its peers in the specialty chemicals sector. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -69.59% compared to the Sensex's 4.67%, the underlying fundamentals suggest that Chembond Materials presents a compelling investment opportunity at its current price of 181.00.