Is Sadhana Nitro overvalued or undervalued?

As of 20 June 2025, Sadhana Nitro's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 53.51, an EV to EBITDA of 15.18, and a PEG ratio of 0.72, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Sadhana Nitro's PE ratio is notably lower than that of Solar Industries at 126.83 and Godrej Industries at 46.43, both of which are classified as very expensive and attractive, respectively. This positions Sadhana Nitro as a more appealing investment opportunity within the commodity chemicals sector. Despite recent poor stock performance relative to the Sensex, where it has seen a year-to-date decline of 69.56% compared to the Sensex's 5.46% gain, the underlying valuation metrics suggest that the stock is currently undervalued.