Is Sonal Adhesives overvalued or undervalued?

As of 27 June 2025, the valuation grade for Sonal Adhesives has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 19.25, an EV to EBITDA of 14.24, and a ROE of 19.73%. In comparison to its peers, Sonal Adhesives is positioned better than Supreme Industries and Astral, which are both classified as very expensive with PE ratios of 57.44 and 76.93, respectively.
Despite its fair valuation, Sonal Adhesives has underperformed in recent returns, with a year-to-date decline of 13.52%, contrasting with the Sensex's gain of 7.58%. This underperformance may indicate market concerns, but the company's ratios suggest it is not overvalued relative to its peers in the commodity chemicals industry.