Is Primo Chemicals overvalued or undervalued?

As of 18 November 2025, the valuation grade for Primo Chemicals has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 52.99, an EV to EBITDA of 8.82, and a PEG ratio of 0.21, which suggests strong growth potential relative to its price.
In comparison to its peers, Primo Chemicals stands out with a significantly lower PEG ratio than Solar Industries (3.07) and Gujarat Fluorochemicals (0.88), both of which are classified as very expensive. This highlights that despite its high PE ratio, the growth prospects of Primo Chemicals may not be fully reflected in its current stock price. Additionally, while the stock has underperformed against the Sensex over the past year, its long-term performance over five and ten years shows substantial gains, reinforcing the narrative of potential undervaluation.