Is Ambani Orgochem overvalued or undervalued?

As of 22 September 2025, the valuation grade for Ambani Orgochem has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its financial metrics. The PE ratio stands at -106.38, reflecting significant losses, while the EV to EBITDA ratio is at 13.48, which is high compared to industry standards. Additionally, the Price to Book Value is 1.97, suggesting that the stock is trading at a premium relative to its book value.
In comparison to its peers, Ambani Orgochem's valuation appears less favorable. For instance, Solar Industries has a PE ratio of 103.79 and an EV to EBITDA of 63.87, while Godrej Industries shows a more attractive PE of 39.26 and an EV to EBITDA of 30.51. Given these comparisons and the company's negative ROE of -1.70%, Ambani Orgochem is assessed as overvalued. Notably, the stock has underperformed against the Sensex over the year, with a return of 50.98% compared to the Sensex's -2.28%, which may suggest some market optimism despite the valuation concerns.