Is Aries Agro overvalued or undervalued?

As of 25 September 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 14.17, EV to EBITDA of 6.80, and a PEG ratio of 0.21. In comparison to its peers, Aries Agro's valuation stands out, particularly when juxtaposed with Chambal Fertilizers, which has a PE ratio of 12.09 and is rated as attractive, highlighting a significant premium for Aries Agro.
The company's financial metrics suggest that it may not justify its current price level, especially when considering the higher valuations of competitors like Coromandel International, which is classified as very expensive with a PE ratio of 33.22. Additionally, while Aries Agro has shown strong performance with a year-to-date return of 39.59% compared to the Sensex's 3.87%, this does not negate the current overvaluation indicated by its ratios. Overall, Aries Agro appears to be overvalued in the current market context.