Is NGL Fine Chem overvalued or undervalued?

As of 4 June 2025, NGL Fine Chem has moved from a fair to an attractive valuation grade. The company appears to be undervalued given its current valuation metrics. The PE ratio stands at 31.11, while the EV to EBITDA ratio is 20.31, and the PEG ratio is notably at 0.00, indicating significant growth potential relative to its price.
In comparison to its peers, NGL Fine Chem's valuation is more favorable than Sun Pharma, which has a PE ratio of 35.25 and an EV to EBITDA of 24.91, as well as Divi's Lab, which is very expensive with a PE ratio of 79.33. Other attractive peers include Cipla with a PE of 22.99 and Dr. Reddy's Labs at 19.49, both of which suggest that NGL Fine Chem's valuation is competitive within the industry. Despite recent underperformance relative to the Sensex, with a year-to-date return of -41.17% compared to the Sensex's 5.65%, the company's attractive valuation metrics indicate potential for recovery and growth.