Is DMCC Speciality overvalued or undervalued?

As of 1 September 2025, the valuation grade for DMCC Speciality has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial ratios, with a PE ratio of 27.94, an EV to EBITDA of 12.62, and a PEG ratio of 0.15, which suggests strong growth potential relative to its price.
In comparison to its peers, DMCC Speciality's valuation stands out; for instance, Godrej Industries, which is also attractive, has a significantly higher PE ratio of 41.08, while Solar Industries is deemed very expensive with a PE of 101.13. This positions DMCC Speciality favorably within the specialty chemicals sector, especially given its robust ROCE of 15.01% and ROE of 9.46%. Notably, while DMCC has underperformed the Sensex year-to-date with a return of -15.49% compared to the Sensex's 2.85%, its long-term performance over the last decade shows a remarkable return of 647.19%, reinforcing the potential for future growth.