Is Denis Chem Lab overvalued or undervalued?

As of 4 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 considered undervalued based on its financial metrics. Key ratios include a PE ratio of 17.64, an EV to EBITDA of 7.35, and a dividend yield of 2.43%.
In comparison with its peers, Denis Chem Lab's valuation stands out favorably against Supreme Industries, which has a PE ratio of 57.34, and Astral, with a PE ratio of 78.35. This suggests that Denis Chem Lab is trading at a much lower valuation relative to its earnings potential. Additionally, despite a challenging year-to-date performance of -37.71% compared to the Sensex's 5.58%, the long-term returns of 205.09% over five years reinforce the attractiveness of the stock at its current price of 104.80.