Is Agni Green overvalued or undervalued?

As of 15 September 2025, the valuation grade for Agni Green has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. However, the company remains overvalued based on its financial metrics. The PE ratio stands at 54.89, significantly higher than peers like NTPC, which has a PE of 13.41, and Tata Power Co., with a PE of 30.06. Additionally, Agni Green's EV to EBITDA ratio is 23.51, compared to NTPC's 10.63, further highlighting its premium valuation.
In terms of performance, Agni Green's ROCE is 6.06% and ROE is only 2.00%, which are relatively low compared to industry standards. The PEG ratio of 0.83 suggests that while growth expectations may justify some premium, the current valuation still appears excessive when compared to peers. Given these factors, Agni Green is assessed as overvalued, especially in light of its recent stock performance, which has underperformed the Sensex with a year-to-date decline of 28.77% versus the Sensex's gain of 6.02%.