Is Narmada Gelatine overvalued or undervalued?

As of 18 September 2025, the valuation grade for Narmada Gelatine has moved from attractive to fair. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 12.13, an EV to EBITDA of 8.82, and a PEG ratio of 0.53, which indicates that the stock may be reasonably priced relative to its growth potential.
In comparison with peers, Narmada Gelatine's valuation stands out against companies like Godrej Industries, which has a PE ratio of 40.62 and is classified as attractive, and Supreme Petrochem, also fairly valued with a PE of 44.31. While Narmada Gelatine has shown a strong return on capital employed (ROCE) of 16.94% and a dividend yield of 2.70%, its recent stock performance has lagged behind the Sensex, particularly over the past week and year.