Is Aarti Industries overvalued or undervalued?

As of 10 November 2025, Aarti Industries' valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 52.94, an EV to EBITDA ratio of 52.28, and a Price to Book Value of 0.25. These ratios suggest that while the company has a high earnings multiple, its book value remains low, which could indicate potential concerns about future profitability.
In comparison to its peers, Aarti Industries' PE ratio is significantly higher than that of Godrej Industries, which stands at 35.42, highlighting a premium valuation. Additionally, Solar Industries, a peer deemed very expensive, has an EV to EBITDA of 59.13, further illustrating that Aarti's valuation is more reasonable relative to some competitors. Recent stock performance shows that Aarti Industries has underperformed the Sensex over the past year, with a decline of 17.27% compared to the Sensex's gain of 5.09%, reinforcing the notion that the stock may be fairly valued at this time.