Is Avadh Sugar overvalued or undervalued?

As of 26 August 2025, the valuation grade for Avadh Sugar has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE Ratio of 11.98, an EV to EBITDA of 8.96, and a Price to Book Value of 0.77, all of which suggest that the stock is trading at a discount compared to its earnings and assets.
In comparison to its peers, Avadh Sugar stands out with a significantly lower PE Ratio than EID Parry at 25.79 and Balrampur Chini at 26.77, both of which are categorized as very expensive and fair, respectively. Additionally, Avadh Sugar's EV to EBITDA ratio of 8.96 is more favorable than the industry average, reinforcing its undervalued status. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date decline of 17.37% compared to a 3.39% gain in the index, the fundamental metrics suggest that Avadh Sugar presents a compelling investment opportunity at its current price of 423.90.