Is Nocil overvalued or undervalued?

As of 7 November 2025, Nocil's valuation grade 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 price-to-earnings (PE) ratio stands at 46.48, while the EV to EBITDA ratio is at 23.98, both of which are significantly higher than industry averages. Additionally, the return on equity (ROE) is only 5.84%, suggesting that the company is not generating sufficient returns relative to its price.
In comparison to its peers, Nocil's valuation appears less favorable. For instance, Godrej Industries, categorized as attractive, has a PE ratio of 35.95 and an EV to EBITDA of 28.96, while Aarti Industries, also attractive, has a PE of 53.01. The high valuation ratios of Nocil, coupled with its recent stock performance—showing a year-to-date decline of 27.99% compared to a 6.50% increase in the Sensex—reinforces the conclusion that the company is overvalued in the current market environment.