Is Gem Aromatics overvalued or undervalued?

As of 1 October 2025, the valuation grade for Gem Aromatics has moved from attractive to fair. This indicates a shift in perception regarding the company's value, suggesting that it is currently fairly valued. The company's PE ratio stands at 25.17, while its EV to EBITDA ratio is 16.79, and the ROCE is 19.07%.
When compared to peers, Gem Aromatics' valuation appears more reasonable than companies like Solar Industries, which is deemed very expensive with a PE ratio of 96.75, and Gujarat Fluoroch, also very expensive at 65.59. In contrast, Godrej Industries is rated attractive with a PE of 39.87, highlighting the relative valuation landscape. Notably, Gem Aromatics has underperformed against the Sensex over the past month, which may reinforce the view that it is fairly valued in the current market context.