Is Sonal Adhesives overvalued or undervalued?

As of 7 July 2025, the valuation grade for Sonal Adhesives has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 18.90, an EV to EBITDA of 14.04, and a ROE of 19.73%.
In comparison to its peers, Sonal Adhesives stands out with a significantly lower PE ratio than Supreme Industries at 56.48 and Astral at 76.32, both categorized as very expensive. Additionally, while Sonal's EV to EBITDA is 14.04, Finolex Industries is at 22.65, further emphasizing Sonal's relative attractiveness. Despite recent underperformance with a year-to-date return of -15.08% compared to the Sensex's 6.79%, the long-term performance shows a robust return of 591.73% over five years, reinforcing the potential for growth and value in Sonal Adhesives.