Is Deepak Chemtex overvalued or undervalued?

As of 3 July 2025, the valuation grade for Deepak Chemtex has moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a PE ratio of 16.37, an EV to EBITDA of 11.34, and a PEG ratio of 0.33, which suggests strong growth potential relative to its price.
In comparison to its peers, Deepak Chemtex stands out as very attractive, especially when contrasted with Sudarshan Chemicals, which is deemed expensive with a PE ratio of 75.33, and Ultramarine Pigments, also very attractive but with a higher PE of 19.5. The company's recent stock performance has outpaced the Sensex, with a 1-year return of 56.2% compared to the Sensex's 4.07%, reinforcing the notion that Deepak Chemtex is a compelling investment opportunity in the specialty chemicals sector.