Is Heubach Colorant overvalued or undervalued?

As of 6 June 2025, Heubach Colorant's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued based on its metrics, with a PE ratio of 28.95, an EV to EBITDA ratio of 16.72, and a ROCE of 15.76%. In comparison to its peers, Sudarshan Chemical is considered expensive with a PE ratio of 71.32, while Kiri Industries is categorized as risky with a PE of 13.72.
Given the current valuation, Heubach Colorant appears to be fairly valued in the context of its industry. The company's recent stock performance has outpaced the Sensex over the past year, returning 53.08% compared to the Sensex's 7.60%. This suggests that while the stock is currently fairly valued, it has shown strong growth relative to broader market trends.