Is Ambika Cotton overvalued or undervalued?

As of 18 August 2025, the valuation grade for Ambika Cotton has moved from fair to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a PE ratio of 13.82, an EV to EBITDA of 7.00, and a Price to Book Value of 0.92.
In comparison with peers, Ambika Cotton's PE ratio is significantly lower than K P R Mill Ltd, which stands at 41.32, and is also lower than Trident's PE of 32.92, indicating that while Ambika Cotton is currently expensive, it is relatively more favorable than some of its peers. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -10.37% compared to the Sensex's 4.01%, reinforcing the notion of overvaluation.