Is Yug Decor overvalued or undervalued?

As of 26 August 2025, the valuation grade for Yug Decor has moved from very expensive to fair. This suggests a reassessment of the company's market position, indicating that it may be more aligned with its intrinsic value. Based on the current analysis, Yug Decor appears to be fairly valued.
Key ratios include a PE ratio of 31.29, an EV to EBITDA of 18.55, and a ROCE of 9.69%. When compared to peers, Solar Industries is categorized as very expensive with a PE of 101.49, while Godrej Industries is attractive with a PE of 42.36. This positions Yug Decor favorably within the specialty chemicals industry, especially considering its lower valuation metrics relative to more expensive peers. Despite recent underperformance, with a year-to-date return of -23.68% compared to the Sensex's 3.39%, the current valuation suggests that the stock is now more reasonably priced.