Is Nikhil Adhesives overvalued or undervalued?

As of 21 February 2025, Nikhil Adhesives has moved from a fair to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 25.72, an EV to EBITDA of 13.15, and a PEG Ratio of 0.94, indicating potential for growth relative to its price.
In comparison to peers, Nikhil Adhesives stands out with a significantly lower valuation than Solar Industries, which has a PE Ratio of 123.77 and an EV to EBITDA of 76.22, both categorized as very expensive. Godrej Industries, another peer, is also attractive with a PE Ratio of 46.63 and an EV to EBITDA of 34.36. Despite recent underperformance relative to the Sensex, with a year-to-date return of -20.76% compared to the Sensex's 5.63%, the company's strong ratios suggest it may be a compelling investment opportunity.