Is Hind.Adhesive overvalued or undervalued?

As of 4 July 2025, Hind.Adhesive's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered undervalued, with a PE ratio of 10.90, an EV to EBITDA ratio of 7.41, and a ROE of 19.00%. In comparison to its peers, Hind.Adhesive's valuation metrics stand out, especially when contrasted with Supreme Industries and Astral, which are deemed very expensive with PE ratios of 56.34 and 76.13, respectively.
Despite recent underperformance relative to the Sensex—with a year-to-date return of -20.20% compared to the Sensex's 6.77%—Hind.Adhesive's financial ratios suggest it remains a compelling investment opportunity within the plastic products industry. The company's solid ROCE of 13.84% further supports its undervalued status, making it an attractive option for investors looking for value in a challenging market environment.