Is Deepak Chemtex overvalued or undervalued?

As of 28 August 2025, the valuation grade for Deepak Chemtex has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its strong financial metrics. Key ratios include a PE Ratio of 14.14, an EV to EBITDA of 9.61, and a PEG Ratio of 0.29, which suggests that the stock is priced favorably relative to its earnings growth potential.
In comparison to its peers, Deepak Chemtex stands out with a much lower PE Ratio than Sudarshan Chem, which is deemed expensive at 171.57, and Kiri Industries, which has a PE of 16.04 but is classified as risky. Additionally, Deepak Chemtex's EV to EBITDA ratio of 9.61 is more favorable compared to competitors like Meghmani Organics at 14.16 and Ultramarine Pigments at 11.81. Despite recent underperformance relative to the Sensex over the past month and year-to-date, the long-term return of 41.97% over the last year reinforces the attractiveness of the stock, suggesting it may be a good buying opportunity at its current price of 131.05.