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, especially when compared to its peers in the commodity chemicals sector. 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 may be undervalued relative to its growth potential.
In comparison to its peers, Sadhana Nitro's PE ratio is notably lower than 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 favorably within the industry, especially considering its PEG ratio of 0.72, which is significantly better than many of its competitors. Despite recent stock performance showing a decline against the Sensex, the valuation metrics indicate that Sadhana Nitro presents a compelling investment opportunity at its current price of 12.28.