Is Heubach Colorant overvalued or undervalued?

As of 17 July 2025, the valuation grade for Heubach Colorant has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its key financial metrics, including a PE ratio of 23.54, an EV to EBITDA of 15.54, and a PEG ratio of 0.55, which suggests strong growth potential relative to its price.
In comparison to its peers, Heubach Colorant's valuation stands out favorably against Sudarshan Chemical, which is considered expensive with a PE of 76.67, and Kiri Industries, classified as risky with a PE of 13.08. The attractive valuation of Heubach Colorant is further supported by its solid ROCE of 15.76% and ROE of 12.45%. Notably, the company's stock has outperformed the Sensex over the past year, returning 22.64% compared to the Sensex's 1.91%, reinforcing the argument for its undervaluation.