Is Nikhil Adhesives overvalued or undervalued?

As of 15 September 2025, the valuation grade for Nikhil Adhesives has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, especially when considering its current PE ratio of 30.20, EV to EBITDA of 14.85, and ROCE of 16.54%. In comparison to peers, Godrej Industries, which is also rated attractive, has a significantly higher PE ratio of 41.59, while Solar Industries is deemed very expensive with a PE of 103.8.
Despite recent stock performance lagging behind the Sensex, particularly over the past year with a decline of 26.21% compared to a slight drop in the Sensex, the overall financial metrics suggest that Nikhil Adhesives presents a compelling investment opportunity. The company's valuation ratios, particularly its PEG ratio of 9.46, further reinforce the notion that it is undervalued relative to its peers in the specialty chemicals industry.