Is Adarsh Mercantil overvalued or undervalued?

As of 26 June 2025, the valuation grade for Adarsh Mercantil has moved from does not qualify to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE ratio of 2.25, a Price to Book Value of 0.10, and an EV to EBITDA of 10.66, all of which suggest that the stock is trading at a substantial discount relative to its earnings and book value.
In comparison to its peers, Adarsh Mercantil stands out with a much lower PE ratio than MMTC, which has a PE of 115.27, and Lloyds Enterprises, which is at 179.3, both of which are categorized as very expensive. Additionally, Adarsh Mercantil's PEG ratio of 0.01 highlights its growth potential relative to its price, further reinforcing its undervalued status. Notably, the company's stock has outperformed the Sensex significantly over various periods, with a year-to-date return of 87.84% compared to the Sensex's 7.19%, underscoring its strong market performance.