Is Siddhika Coatins overvalued or undervalued?

As of 29 August 2025, Siddhika Coatins has moved from a fair to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 14.62, an EV to EBITDA of 10.31, and a PEG ratio of 0.18, indicating strong growth potential relative to its price. The return on capital employed (ROCE) stands at an impressive 53.95%, while the return on equity (ROE) is 22.18%, further supporting the attractiveness of the investment.
In comparison to its peers, Siddhika Coatins shows a significantly lower PE ratio than Sudarshan Chem, which is considered expensive at 169.37, and Kiri Industries, which has a PE of 16.15 but is classified as risky. Other attractive peers like Ultramarine Pigments have a PE of 18.03, highlighting Siddhika's relative value in the market. Additionally, the company's stock has outperformed the Sensex over the past year, with a return of 35.71% compared to the Sensex's decline of 2.88%, reinforcing the positive valuation outlook.