Is J.G.Chemicals overvalued or undervalued?

As of 7 July 2025, J.G.Chemicals has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued based on its key financial ratios, including a PE Ratio of 31.79, an EV to EBITDA of 21.96, and a PEG Ratio of 0.32. Compared to peers, J.G.Chemicals' valuation appears high, especially when juxtaposed with Godrej Industries, which has a PE of 40.15 and an EV to EBITDA of 31.33, indicating a more favorable valuation relative to its earnings potential.
While J.G.Chemicals has shown strong performance with a 1-year stock return of 99.77% compared to the Sensex's 4.31%, the elevated valuation ratios suggest that the stock may be priced for perfection. The company's ROCE stands at a solid 25.18%, but the overall market sentiment and comparison with peers indicate that it may be prudent for investors to approach with caution given the current overvaluation.