Is Asian Tea & Exp overvalued or undervalued?

As of 18 September 2025, the valuation grade for Asian Tea & Exp has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 28.56, an EV to EBITDA of 48.21, and a PEG ratio of 0.27, which suggests that while the company has growth potential, its current valuation may not be justified given its earnings performance.
In comparison to peers, Tata Consumer is deemed very expensive with a PE ratio of 84.75, while CCL Products is attractive with a PE of 37.71. Asian Tea & Exp's valuation metrics reflect a premium compared to its peers, particularly in the context of its low ROCE of 1.01% and ROE of 0.75%. Additionally, the company's recent stock performance has lagged significantly behind the Sensex, with a year-to-date return of -35.63% compared to the Sensex's 6.24%, further reinforcing the notion that the stock may be overvalued at its current price of 11.42.