Is Gem Aromatics overvalued or undervalued?

As of 1 October 2025, the valuation grade for Gem Aromatics has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a PE ratio of 25.17, an EV to EBITDA ratio of 16.79, and a ROE of 18.80%.
In comparison to its peers, Gem Aromatics' valuation metrics are significantly lower than those of Solar Industries, which has a PE of 96.75, and Gujarat Fluoroch, with a PE of 65.59, both categorized as very expensive. This suggests that while Gem Aromatics is fairly valued, it remains more attractive than several of its peers in the specialty chemicals sector. Notably, the company's recent stock performance has lagged behind the Sensex, with a 1-month return of -6.51% compared to a 0.77% gain for the index, reinforcing the notion that it may be facing some market headwinds.