Is Arabian Petrol. overvalued or undervalued?

As of 30 June 2025, Arabian Petrol's valuation grade has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued. Key ratios supporting this assessment include a PE ratio of 9.18, an EV to EBITDA of 7.31, and a PEG ratio of 0.32, which suggests potential for growth relative to its price.
In comparison to its peers, Arabian Petrol's PE ratio is significantly lower than Solar Industries, which has a PE of 131.62, and Godrej Industries, which stands at 42.82. This positions Arabian Petrol favorably within its industry, especially considering its strong ROCE of 18.60% and ROE of 19.71%. Notably, while the stock has underperformed the Sensex over the past year with a return of -3.21% compared to the Sensex's 6.27%, its current valuation indicates it may be a more attractive investment opportunity relative to its peers.