Is Sonal Adhesives overvalued or undervalued?

As of 19 November 2025, the valuation grade for Sonal Adhesives has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 21.06, an EV to EBITDA of 14.86, and a ROE of 14.57%.
In comparison to its peers, Sonal Adhesives' valuation is more reasonable than companies like Supreme Industries and Astral, which are considered very expensive with PE ratios of 53.82 and 76.45, respectively. Meanwhile, Finolex Industries, another fair peer, has a PE ratio of 23.87, indicating that Sonal is competitively positioned within its industry. Despite recent underperformance relative to the Sensex, with a year-to-date return of -24.62% compared to the Sensex's 9.02%, the company's current valuation suggests it is neither undervalued nor overvalued at this time.