Is Nikhil Adhesives overvalued or undervalued?

As of 13 October 2025, the valuation grade for Nikhil Adhesives has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 33.69, an EV to EBITDA of 16.39, and a ROCE of 16.54%. In comparison to peers, Godrej Industries has a PE of 34.97 and an EV to EBITDA of 28.51, while Solar Industries is considered very expensive with a PE of 100.41 and an EV to EBITDA of 61.79.
Despite the fair valuation, Nikhil Adhesives has underperformed relative to the Sensex over the past year, with a stock return of -9.73% compared to the Sensex's 1.16%. This performance, combined with the current ratios, suggests that while the company is not undervalued, it may face challenges in justifying its current price levels in the competitive specialty chemicals market.