Is Ambika Cotton overvalued or undervalued?

As of 14 November 2025, Ambika Cotton's valuation grade has moved from attractive to fair, indicating a shift in its market perception. Based on the analysis, the company appears to be fairly valued at this time. Key ratios include a PE ratio of 12.02, a Price to Book Value of 0.80, and an EV to EBITDA of 5.45, which suggest that the stock is priced in line with its earnings and asset value.
In comparison to its peers, Ambika Cotton's PE ratio is significantly lower than K P R Mill Ltd, which has a PE of 43.91, and is also more favorable than Trident's PE of 32.4. While Ambika Cotton's valuation metrics are reasonable, its recent stock performance has lagged behind the Sensex, with a year-to-date return of -19.63% compared to the Sensex's 8.22%. This underperformance may reflect broader market trends or company-specific challenges, but overall, the stock seems to be fairly valued at this juncture.