Is Ambani Orgochem overvalued or undervalued?

As of 23 September 2025, the valuation grade for Ambani Orgochem has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of -106.38, an EV to EBIT of 18.84, and an EV to EBITDA of 13.48. These ratios suggest that the company's market price does not reflect its earnings potential, especially when compared to peers like Solar Industries, which has a PE ratio of 101.9, and Gujarat Fluoroch, with a PE of 68.24.
In addition to these concerning ratios, Ambani Orgochem's return on equity (ROE) stands at -1.70%, further highlighting the company's struggles in generating shareholder value. While the stock has shown strong performance over the past five years with a return of 227.98%, it has underperformed the Sensex year-to-date and over the past year, indicating that despite past gains, the current valuation may not be justified in light of its financial metrics.