Is Narmada Gelatine overvalued or undervalued?

As of 13 November 2025, Narmada Gelatine's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 10.50, an EV to EBITDA of 7.55, and a PEG ratio of 0.34, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Narmada Gelatine stands out favorably; for instance, Godrej Industries, also rated as attractive, has a significantly higher PE ratio of 37.09, while Solar Industries is deemed very expensive with a PE of 94.31. The company's strong return on capital employed (ROCE) at 20.86% and return on equity (ROE) at 16.90% further reinforce its solid financial health. Notably, Narmada Gelatine has outperformed the Sensex over the past three years, with a return of 57.10% compared to the Sensex's 36.71%, which underscores its potential as a compelling investment opportunity.