Is HP Adhesives overvalued or undervalued?

As of 7 November 2025, HP Adhesives has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued. 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' PE ratio is significantly lower than Solar Industries at 97.45 and Gujarat Fluoroch at 63.86, which are both categorized as very expensive. However, it is higher than Godrej Industries, which has a PE of 35.95 and is also rated as attractive. The company's recent stock performance has been underwhelming, with a year-to-date return of -39.94%, contrasting sharply with the Sensex's gain of 6.50% during the same period, reinforcing the perception of overvaluation.