Is Nocil overvalued or undervalued?

As of 7 November 2025, the valuation grade for Nocil has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 46.48, while the EV to EBITDA ratio is 23.98, both of which are significantly higher than many of its peers. For instance, Godrej Industries, which is rated attractive, has a PE ratio of 35.95 and an EV to EBITDA of 28.96, suggesting that Nocil's valuation is not justified relative to its earnings potential.
In comparison to its peers, Nocil's PEG ratio is notably low at 0.00, which typically indicates a lack of growth expectations, further supporting the overvaluation verdict. The company's return on equity (ROE) is 5.84%, which is not compelling when compared to the industry standard. Additionally, Nocil's stock has underperformed against the Sensex, with a year-to-date return of -27.99% compared to the Sensex's 6.50%, reinforcing the notion that the stock is currently overvalued.