Is Primo Chemicals overvalued or undervalued?

As of 15 September 2025, the valuation grade for Primo Chemicals has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered undervalued, particularly when looking at its key ratios: the PE ratio stands at 32.86, the EV to EBITDA ratio is 10.61, and the PEG ratio is notably low at 0.21, suggesting strong growth potential relative to its price.
In comparison to its peers, Primo Chemicals demonstrates a more favorable valuation. For instance, Solar Industries is classified as very expensive with a PE ratio of 103.8, while Godrej Industries, rated as attractive, has a PE of 41.59. This positions Primo Chemicals favorably within the commodity chemicals sector. Additionally, despite a challenging year-to-date performance with a decline of 29.71%, the company's long-term performance over five years shows a robust return of 152.57%, significantly outperforming the Sensex.