Is Arabian Petrol. overvalued or undervalued?

As of 26 August 2025, Arabian Petrol's valuation grade has moved from attractive to fair, indicating a shift in its perceived investment quality. The company is currently fairly valued. Key ratios include a PE ratio of 8.47, an EV to EBITDA ratio of 6.89, and a ROE of 19.71%.
In comparison to its peers, Arabian Petrol's PE ratio is significantly lower than Solar Industries, which is considered very expensive at 101.49, and also lower than Godrej Industries, which is attractive at 42.36. This suggests that Arabian Petrol may be undervalued relative to some of its peers, despite its fair valuation grade. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -12.51% compared to the Sensex's 4.51%, reinforcing the notion that it may be undervalued in the current market context.