Is India Gelatine overvalued or undervalued?

As of 17 October 2025, the valuation grade for India Gelatine has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 11.93, an EV to EBITDA ratio of 8.46, and a price to book value of 1.35. These figures suggest that India Gelatine is trading at a discount compared to its peers, particularly when compared to Godrej Industries, which has a PE ratio of 36.08, and Solar Industries, which is significantly overvalued at a PE ratio of 100.67.
Despite recent underperformance relative to the Sensex, with a year-to-date return of -16.80% compared to the Sensex's 7.44%, the strong fundamentals reflected in a ROCE of 13.94% and a dividend yield of 1.53% support the attractiveness of the stock. Given these metrics and the favorable peer comparison, India Gelatine presents a compelling investment opportunity in the specialty chemicals sector.