Is Nikhil Adhesives overvalued or undervalued?

As of 30 June 2025, Nikhil Adhesives has moved from a fair valuation to an expensive one. The company is currently overvalued, as indicated by its PE ratio of 33.24, a Price to Book Value of 4.32, and an EV to EBITDA ratio of 16.57. In comparison to its peers, Solar Industries is significantly more expensive with a PE ratio of 131.62, while Godrej Industries, which is rated attractive, has a PE ratio of 42.82.
The valuation metrics suggest that Nikhil Adhesives is trading at a premium relative to its industry peers, which raises concerns about its current price of 122.00. Despite a strong recent performance with a 1-week return of 26.50% compared to the Sensex's 2.09%, the overall valuation indicates that investors may be paying too much for future growth potential.