Is Denis Chem Lab overvalued or undervalued?

As of 13 June 2025, the valuation grade for Denis Chem Lab has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a PE ratio of 17.79, an EV to EBITDA of 7.43, and a dividend yield of 2.41%. In comparison to its peers, Denis Chem Lab's valuation metrics stand out; for instance, Supreme Industries has a PE ratio of 57.35, while Astral's is at 78.36, both of which are considerably higher.
Denis Chem Lab's return on capital employed (ROCE) is notably high at 24.70%, which further supports its undervaluation status. While the stock has experienced a decline of 38.42% year-to-date, it has outperformed the Sensex over the last three and five years, with returns of 93.64% and 177.01%, respectively. This performance, combined with its attractive valuation ratios, reinforces the conclusion that Denis Chem Lab is currently undervalued in the market.