Is Ajanta Soya overvalued or undervalued?

As of 2 June 2025, the valuation grade for Ajanta Soya has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 12.60, an EV to EBITDA ratio of 8.68, and a PEG ratio of 0.02, which suggests strong growth potential relative to its price.
When compared to peers, Ajanta Soya's valuation stands out; for instance, Guj. Ambuja Exp has a PE ratio of 21.62 and Gokul Agro is priced at 16.88, both indicating that Ajanta Soya is trading at a lower valuation despite its favorable growth metrics. Additionally, while Ajanta Soya has experienced a year-to-date decline of 12.06%, it has delivered a remarkable 47.05% return over the past year, significantly outperforming the Sensex's 7.57% return in the same period, reinforcing its undervalued status.