Is HP Adhesives overvalued or undervalued?

As of 13 October 2025, the valuation grade for HP Adhesives has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE Ratio of 25.86, an EV to EBITDA of 16.48, and a ROE of 9.90%.
In comparison to its peers, HP Adhesives stands out with a significantly lower PE Ratio than Solar Industries, which has a PE of 100.41, and Gujarat Fluoroch, at 64.92. While HP Adhesives shows a PEG Ratio of 0.00, indicating no growth expectations priced in, its dividend yield of 0.85% provides some return to investors. Despite recent stock performance lagging behind the Sensex, which has returned 5.36% YTD, the company's valuation metrics suggest it holds potential for recovery and growth.