Is Galaxy Surfactants Overvalued or Undervalued Right Now?

September 1, 2026
Posted by: Kunal Singla
Category: Market

Galaxy Surfactants CMP Rs 2,252.80 (31 Aug 2026), down 1.41%. PE 22.96 vs industry PE 37.87. ROE 9.74%. 52W range Rs 1,510.00 to Rs 2,648.00.

Quick Answer

Galaxy Surfactants trades at a price to earnings ratio of 22.96, well below the industry average of 37.87, which points toward undervaluation on a simple multiple basis. The stock’s 9.74% return on equity and Rs 774.18 book value per share suggest the market may be underpricing the underlying business relative to peers. Whether Galaxy Surfactants is overvalued or undervalued right now depends on whether that discount reflects a genuine risk the market has priced in or simply a lack of investor attention. On valuation multiples alone, the stock currently sits below what the broader sector is priced at.

Is Galaxy Surfactants overvalued or undervalued right now is a question worth asking given how its price to earnings ratio compares with the rest of its sector. At the current market price of Rs 2,252.80, the stock trades roughly 14.9% below its 52 week high of Rs 2,648.00 and about 49.2% above its 52 week low of Rs 1,510.00.

Galaxy Surfactants’s share price moved down 1.41% in Monday’s session to Rs 2,252.80, against a market capitalisation of Rs 8,123 Cr. This article looks at the numbers, the PE ratio, price to book, return on equity, debt levels and recent earnings trends, that determine whether the current price reflects fair value or a stretched multiple.

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Table of Contents

Galaxy Surfactants Valuation Metrics: Where Does the Stock Stand?

Valuation Metric	Galaxy Surfactants
CMP (31 Aug 2026)	Rs 2,252.80
Market Cap	Rs 8,123 Cr
P/E Ratio	22.96
Industry P/E	37.87
P/B Ratio	2.96
Sector Average P/B (specialty chemicals)	4.62
Return on Equity (ROE)	9.74%
Sector Average ROE (specialty chemicals)	5.52%
EPS (TTM)	Rs 99.79
Book Value per Share	Rs 774.18
Debt to Equity	0.09
Dividend Yield	0.96%
Sector Average Dividend Yield (specialty chemicals)	0.49%
52 Week High / Low	Rs 2,648.00 / Rs 1,510.00

The headline number here is the price to earnings ratio. At 22.96, the Galaxy Surfactants PE ratio is 0.61 times the industry average of 37.87. Measured against its specialty chemicals sector peers, the gap widens further on other measures too: a P/B of 2.96 against a sector average of 4.62, and an ROE of 9.74% against a sector average of 5.52%.

Is Galaxy Surfactants Overvalued Based on Its P/E Ratio?

Based on the P/E ratio alone, Galaxy Surfactants looks undervalued. The stock’s PE of 22.96 sits well below the industry average of 37.87, which can reflect either a genuine bargain or a market discounting some risk in the business that is not obvious from the ratio itself. Investors relying only on the PE ratio would classify Galaxy Surfactants as cheaper than its peers, but the Galaxy Surfactants PE ratio still needs to be read alongside its return ratios and earnings quality before concluding the stock is a genuine value opportunity.

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Galaxy Surfactants’s Financial Growth and Profitability

Galaxy Surfactants’s revenue moved from Rs 4,251.03 crore in FY2025 to Rs 5,279.92 crore in FY2026, a change of 24.2%. Net profit fell from Rs 304.91 crore to Rs 267.38 crore over the same period, a swing of roughly 12.3%.

The dip in net profit is worth watching closely, since a PE of 22.96 assumes the business can grow back into its current valuation rather than shrink further. A sustained profit decline would make the Galaxy Surfactants share price look more expensive than the headline PE already suggests.

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Arguments That Galaxy Surfactants Could Be Overvalued

Sector-wide re-rating risk: If sentiment toward the sector turns, a PE of 22.96 still has room to compress toward the industry average of 37.87.
Limited margin of safety: At Rs 2,252.80, the stock is only 14.9% below its 52 week high of Rs 2,648.00, leaving less room for error if earnings disappoint.

Arguments Against a Discount

Low leverage: A debt to equity ratio of 0.09 gives Galaxy Surfactants a comparatively strong balance sheet.
52 week range context: At Rs 2,252.80, the stock is 49.2% above its 52 week low of Rs 1,510.00, showing it has already found some support at lower levels.

Verdict: Is Galaxy Surfactants Overvalued or Undervalued Right Now?

On balance, Galaxy Surfactants looks undervalued by traditional multiples, trading at a PE of 22.96 against an industry average of 37.87. That gap can close either through the share price catching up or through the business underperforming enough to justify the discount, so the read depends on which explanation fits the company’s recent earnings trend better. A 9.74% ROE is a reasonable starting point for that judgement, but investors should weigh why the market has kept the stock at a discount before treating the gap as a straightforward opportunity.

What Could Change This Valuation Picture for Galaxy Surfactants?

Two broad scenarios could shift this valuation call on Galaxy Surfactants in either direction. On the upside, the market recognising the gap between the PE of 22.96 and the industry average of 37.87, which would show up as the share price re-rating higher without a change in earnings. On the downside, a genuine deterioration in the business that justifies the current discount, in which case the low PE would turn out to be a fair reflection of risk rather than a bargain. Investors watching the Galaxy Surfactants share price over the next few quarters should track whether reported ROE holds near 9.74% and whether the PE gap versus the industry average of 37.87 widens or narrows, since both will matter more to the eventual answer than the current price point on its own.

Conclusion

Galaxy Surfactants’s numbers point to a stock that is undervalued on headline multiples, though its return ratios help explain part of the gap. Investors tracking the Galaxy Surfactants share price should watch whether earnings growth can keep pace with the current PE of 22.96, since that gap remains the single biggest variable in whether the stock is undervalued, fairly priced, or overvalued from here. This article is for informational purposes only and is not investment advice.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

FAQs on Galaxy Surfactants Valuation

Is Galaxy Surfactants overvalued or undervalued right now?

Ans. Based on a PE ratio of 22.96 against an industry average of 37.87, Galaxy Surfactants currently looks undervalued on relative valuation. Its 9.74% ROE is an important part of the picture alongside the PE ratio.

What is Galaxy Surfactants’s current PE ratio?

Ans. Galaxy Surfactants’s price to earnings ratio stands at 22.96, compared with an industry average PE of 37.87.

What is Galaxy Surfactants’s return on equity?

Ans. Galaxy Surfactants generates a return on equity of 9.74%, against a sector average of 5.52% among specialty chemicals peers.

What is Galaxy Surfactants’s 52 week high and low?

Ans. Galaxy Surfactants’s 52 week high is Rs 2,648.00 and its 52 week low is Rs 1,510.00. The stock currently trades around Rs 2,252.80, roughly 14.9% below its high.

Does Galaxy Surfactants have high debt?

Ans. Galaxy Surfactants carries a debt to equity ratio of 0.09, which is low for its sector.

What is Galaxy Surfactants’s dividend yield?

Ans. Galaxy Surfactants offers a dividend yield of 0.96% at the current share price.

Is Galaxy Surfactants a good stock to buy at current levels?

Ans. Galaxy Surfactants’s current valuation suits investors who agree with the undervalued read on its PE ratio and are comfortable with the trade-off between its return ratios and its price. This is for informational purposes only and is not investment advice.

What is Galaxy Surfactants’s price to book ratio?

Ans. Galaxy Surfactants trades at a price to book ratio of 2.96, compared with a sector average of 4.62 among specialty chemicals peers.

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Author: Kunal Singla

Kunal Singla is the Associate Director - Research at Univest, leading quantitative equity research, intraday trading setups, and derivatives strategy. With 4+ years of experience in Indian equity markets, he combines rigorous quantitative methods with classical technical analysis to build high-conviction research frameworks for retail and advisory clients. He holds an MSc from the Indian Institute of Technology (IIT) Delhi — one of India's most selective institutions — and has completed the Certificate in Quantitative Finance (CQF), a globally recognised programme covering derivatives pricing, risk modelling, machine learning for finance, and advanced portfolio theory. This combination places him in a small group of Indian analysts with both deep academic training in quantitative methods and SEBI-recognised research credentials. Kunal holds seven SEBI-recognised NISM certifications spanning research, derivatives, portfolio management, and securities operations: Series-XV (Research Analyst), Series-XXI-A (Portfolio Managers), Series-XVI (Commodity Derivatives), Series-VIII (Equity Derivatives), Series-VII (SORM), Series-V-A (Mutual Fund Distributors), and Series-I (Currency Derivatives). At Univest — India's SEBI-registered research and advisory platform — Kunal leads research inputs for Pro Lite, Pro Super, Pro Gold, and Pro Commodity advisory services, alongside publishing intraday stock picks on Univest Blogs.