Is Sonal Adhesives overvalued or undervalued?

As of 26 June 2025, the valuation grade for Sonal Adhesives has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, with a PE ratio of 18.84, an EV to EBITDA of 14.01, and a ROE of 19.73%. In comparison, peers such as Supreme Industries and Astral are considered very expensive, with PE ratios of 57.66 and 77.95, respectively, highlighting Sonal Adhesives' relative affordability.
Despite recent underperformance, with a year-to-date return of -15.35% compared to the Sensex's 7.19%, the company's strong financial ratios suggest it may be a compelling investment opportunity. The EV to Sales ratio of 0.39 further emphasizes its potential value compared to its peers, reinforcing the conclusion that Sonal Adhesives is currently undervalued in the market.