Is Archit Organosys overvalued or undervalued?

As of 8 October 2025, the valuation grade for Archit Organosys has moved from attractive to fair, indicating a shift in its perceived value. The company is currently considered overvalued based on its high PE ratio of 94.81, an EV to EBIT of 106.39, and a Price to Book Value of 1.48. In comparison, peers like Godrej Industries, which has a PE ratio of 35.86 and an EV to EBITDA of 28.92, illustrate a significant disparity in valuation metrics.
Despite a recent stock return of 1.87% over the past year, which outperformed the Sensex's 0.17%, the overall performance over longer periods shows a concerning trend, particularly a decline of 40.43% over three years. This suggests that while the company has had some positive returns in the past year, its current valuation does not align with its financial performance relative to peers in the commodity chemicals industry.