Is Gem Aromatics overvalued or undervalued?

As of 26 September 2025, Gem Aromatics has moved from a fair to an attractive valuation grade. The company appears to be undervalued based on its current metrics, with a PE ratio of 23.55, an EV to EBITDA of 15.81, and a ROCE of 19.07%. In comparison to its peers, Gem Aromatics has a significantly lower PE ratio than Solar Industries, which stands at 99.56, and Gujarat Fluoroch at 65.15, both categorized as very expensive.
Despite recent stock performance showing a decline of 11.57% over the past week compared to a 2.66% drop in the Sensex, the overall valuation metrics suggest that Gem Aromatics is positioned favorably within its industry. With a PEG ratio of 0.00, the company indicates strong growth potential relative to its price, reinforcing the conclusion that it is currently undervalued.