Is Aries Agro overvalued or undervalued?

As of 22 August 2025, Aries Agro's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its PE ratio of 15.20, EV to EBITDA of 7.28, and a PEG ratio of 0.22. These ratios suggest that while the company shows some profitability and growth potential, its current market price does not reflect a favorable investment opportunity compared to its peers.
In comparison with industry peers, Aries Agro's PE ratio is significantly lower than that of Coromandel International, which stands at 35.91, and higher than Chambal Fertilizers at 12.85. This places Aries Agro in a challenging position within the market, as it is priced higher than some competitors while lacking the growth metrics that justify such a valuation. Notably, Aries Agro has outperformed the Sensex with a year-to-date return of 49.81% compared to the Sensex's 4.05%, but this strong performance does not mitigate the current overvaluation status.