Is Archit Organosys overvalued or undervalued?

As of 18 August 2025, the valuation grade for Archit Organosys has moved from attractive to very attractive. Despite this positive change, the company appears to be overvalued based on key financial ratios. The PE ratio stands at 92.67, while the EV to EBITDA ratio is 18.27, and the PEG ratio is an exceptionally low 0.01, indicating a potential disconnect between the stock price and its earnings growth prospects.
In comparison to its peers, Archit Organosys' valuation is notably high; for instance, Solar Industries has a PE ratio of 108.25 and an EV to EBITDA of 66.62, while Godrej Industries shows a more reasonable PE of 42.48 and an EV to EBITDA of 32.01. Given these comparisons and the current market dynamics, Archit Organosys is deemed overvalued. Recent stock performance shows a 1-week return of 2.17%, outperforming the Sensex's 0.83%, but this does not mitigate the overall valuation concerns.