Is Narmada Gelatine overvalued or undervalued?

As of 15 September 2025, Narmada Gelatine's valuation grade 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 12.61, an EV to EBITDA of 9.15, and a PEG ratio of 0.55, suggesting that it offers good growth potential relative to its price.
In comparison to its peers, Narmada Gelatine stands out favorably; for instance, Godrej Industries has a significantly higher PE ratio of 41.59, while Solar Industries is deemed very expensive with a PE of 103.8. Despite a recent decline in stock price, Narmada Gelatine has shown strong performance over the longer term, with a 3-year return of 72.21%, outperforming the Sensex's 36.46%. Overall, the company's financial metrics and peer comparisons support the conclusion that it is undervalued in the specialty chemicals sector.