Is Nikhil Adhesives overvalued or undervalued?

As of 12 September 2025, the valuation grade for Nikhil Adhesives has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 30.67, an EV to EBITDA of 15.05, and a ROCE of 16.54%.
In comparison to its peers, Nikhil Adhesives' PE ratio is significantly lower than that of Solar Industries, which stands at 103.32, and Godrej Industries at 40.44, suggesting that while Nikhil is fairly valued, its peers are trading at much higher valuations. The stock has underperformed the Sensex over the past year, with a return of -21.45% compared to the Sensex's -1.28%, reinforcing the notion that the stock may be facing challenges despite its fair valuation.