Is Allied Blenders overvalued or undervalued?

As of 23 October 2025, the valuation grade for Allied Blenders has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 72.82, a Price to Book Value of 11.34, and an EV to EBITDA of 39.06. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Allied Blenders' PE ratio is notably higher than Varun Beverages at 55.25 and United Spirits at 62.71, both of which are also classified as very expensive. The PEG ratio for Allied Blenders stands at 0.00, which raises concerns about growth expectations not being met. Despite the company's strong stock performance, with a year-to-date return of 45.54% compared to the Sensex's 8.21%, the high valuation metrics indicate that investors may be overestimating future growth potential.