Is Nikhil Adhesives overvalued or undervalued?

As of 7 August 2025, the valuation grade for Nikhil Adhesives 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 31.62, an EV to EBITDA ratio of 15.83, and a PEG ratio of 1.16. These figures suggest that the company is positioned well compared to its peers, particularly when contrasted with Godrej Industries, which has a PE of 38.02, and Solar Industries, which is deemed very expensive with a PE of 111.5.
In the specialty chemicals sector, Nikhil Adhesives demonstrates solid performance metrics, including a ROCE of 16.35% and a ROE of 12.99%. The company's recent stock performance has outpaced the Sensex over the past week, with a return of 1.75% compared to the Sensex's decline of 0.69%. This trend reinforces the attractiveness of Nikhil Adhesives as an investment opportunity in the current market landscape.