Is Archit Organosys overvalued or undervalued?

As of 23 September 2025, the valuation grade for Archit Organosys has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued, primarily due to its high PE ratio of 98.91 and an EV to EBIT ratio of 110.12, which are significantly above industry norms. Additionally, the company's ROCE stands at a mere 1.27%, reflecting poor capital efficiency.
In comparison with peers, Solar Industries has a PE ratio of 101.9 and an EV to EBITDA of 62.7, while Godrej Industries, deemed attractive, has a much lower PE ratio of 39.42 and an EV to EBITDA of 30.58. These comparisons highlight that Archit Organosys is not only overvalued relative to its peers but also struggles with a PEG ratio of 0.01, indicating limited growth prospects. Despite a recent positive performance against the Sensex, with a 5-year return of 261.59% compared to the Sensex's 117.96%, the current valuation metrics suggest caution for potential investors.