Is Crestchem overvalued or undervalued?

As of 19 November 2025, Crestchem's valuation grade has moved from very attractive to fair, indicating a shift in its market perception. The company is currently fairly valued, with a PE ratio of 17.38, an EV to EBITDA of 15.34, and a ROE of 25.03%. In comparison, peers such as Godrej Industries, which is rated attractive, has a significantly higher PE ratio of 37.28, while Solar Industries is deemed very expensive with a PE of 94.38.
Despite the fair valuation, Crestchem has underperformed relative to the Sensex, with a year-to-date return of -58.22% compared to the Sensex's 9.02%. This underperformance, coupled with its current ratios, suggests that while Crestchem may not be undervalued, it is not positioned as a strong investment compared to its peers in the specialty chemicals sector.