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 is currently considered undervalued, 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 stands out with a significantly lower PE ratio than Solar Industries, which has a PE of 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, Gem Aromatics' valuation metrics suggest it is positioned favorably within the specialty chemicals industry. The PEG ratio of 0.00 further indicates potential for growth, reinforcing the notion that the company may be undervalued relative to its earnings growth prospects.