Is HP Adhesives overvalued or undervalued?

As of 7 November 2025, the valuation grade for HP Adhesives has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 26.85, an EV to EBITDA of 17.15, and a ROE of 9.90%.
When compared to peers, HP Adhesives stands out with a more favorable valuation than Solar Industries, which has a PE of 97.45, and Gujarat Fluoroch, with a PE of 63.86. In contrast, Godrej Industries, another peer, has a PE of 35.95, suggesting that HP Adhesives is relatively more attractive within the specialty chemicals sector. Additionally, HP Adhesives has underperformed against the Sensex over the past year, with a stock return of -41.54% compared to the Sensex's 4.62%, reinforcing the notion that the stock may be undervalued relative to its potential.