Is Allied Blenders overvalued or undervalued?

As of 6 November 2025, the valuation grade for Allied Blenders has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. However, the company is still considered overvalued. Key ratios reveal a PE ratio of 69.60, an EV to EBITDA of 38.10, and a Price to Book Value of 11.59, all of which are significantly higher than industry norms.
In comparison to its peers, Allied Blenders has a much higher PE ratio than Varun Beverages at 53.74 and United Spirits at 60.07, both categorized as very expensive. This suggests that Allied Blenders is not only overvalued relative to its peers but also lacks a competitive edge in valuation metrics. Despite a strong performance in stock returns, with a year-to-date increase of 48.8% compared to the Sensex's 6.62%, the high valuation ratios indicate that the stock may not be a prudent investment at its current price of 639.40.