Is Andhra Sugars overvalued or undervalued?

As of 14 November 2025, Andhra Sugars' valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 14.21, an EV to EBITDA of 4.60, and a PEG ratio of 0.46, which suggests that while the company is generating earnings, its valuation does not justify the current price level.
In comparison to its peers, Andhra Sugars' PE ratio is significantly lower than Adani Enterprises' 139.01 and SRF's 51.93, both of which are categorized as expensive or very expensive. However, it is also worth noting that Tata Chemicals, deemed very attractive, has a PE of 57.44, indicating that there are more favorable investment opportunities in the sector. Additionally, Andhra Sugars has underperformed relative to the Sensex over various time frames, with a year-to-date return of -15.89% compared to the Sensex's 8.22%, reinforcing the view that the stock is overvalued.