Is Amara Raja Ener. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Amara Raja Energy has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 24.26, an EV to EBITDA of 11.88, and a dividend yield of 1.65%.
In comparison to its peers, Amara Raja Energy's PE ratio is significantly lower than Exide Industries, which stands at 38.21, and HBL Engineering at 43.69, both classified as very expensive. Additionally, while the PEG ratio for Amara Raja is 0.00, indicating no growth expectations priced in, Eveready Industries has a PEG of 1.46, suggesting a more optimistic growth outlook. Despite recent underperformance relative to the Sensex, with a year-to-date return of -19.66% compared to the Sensex's 8.22%, the company's attractive valuation suggests potential for recovery.