Is Nikhil Adhesives overvalued or undervalued?

As of 8 August 2025, Nikhil Adhesives has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 31.60, an EV to EBITDA of 15.82, and a ROCE of 16.35%.
In comparison to its peers, Nikhil Adhesives' valuation is more reasonable than companies like Solar Industries, which has a PE of 103.57, and Gujarat Fluoroch, with a PE of 61.32. Despite a recent decline in stock performance relative to the Sensex over the past year, where Nikhil Adhesives returned -14.59% compared to the Sensex's 1.23%, its long-term performance remains strong with a 5-year return of 826.86%. Overall, the current valuation suggests that Nikhil Adhesives is fairly positioned in the specialty chemicals sector.