Is Primo Chemicals overvalued or undervalued?

As of 17 September 2025, the valuation grade for Primo Chemicals has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a PE ratio of 33.59, an EV to EBITDA of 10.80, and a PEG ratio of 0.21, which suggests strong growth potential relative to its price.
When compared to peers, Primo Chemicals stands out favorably. For instance, Solar Industries has a PE ratio of 106.01, and Godrej Industries has a PE ratio of 40.66, both of which are considerably higher, indicating that Primo is trading at a more attractive valuation. Despite recent underperformance with a year-to-date return of -29.47% compared to the Sensex's 5.83%, the company's strong valuation metrics and peer comparisons suggest it may be a compelling investment opportunity moving forward.