Is Nitta Gelatin overvalued or undervalued?

As of 8 July 2025, Nitta Gelatin's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued based on its financial ratios, which include a PE ratio of 11.01, an EV to EBITDA of 6.99, and a ROCE of 28.92%. These metrics suggest that while the company is performing well, it may not present an exceptional investment opportunity at this time.
In comparison to its peers, Nitta Gelatin's valuation appears more reasonable, especially when juxtaposed with Solar Industries, which has a significantly high PE ratio of 123.54, and Godrej Industries, which is considered attractive with a PE of 39.67. The recent performance of Nitta Gelatin has outpaced the Sensex, with a year-to-date return of 21.02% compared to the Sensex's 7.13%, reinforcing the notion that while the stock is fairly valued, it has shown strong relative performance in the market.