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 significant improvement in its valuation outlook. The company is currently assessed as undervalued, supported by a PE ratio of 11.98, an EV to EBITDA ratio of 8.96, and a Price to Book Value of 0.77. These ratios suggest that Avadh Sugar is trading at a discount compared to its peers.
In comparison to its industry peers, Avadh Sugar's valuation metrics stand out favorably. For instance, EID Parry is categorized as very expensive with a PE ratio of 25.79, while Balrampur Chini is rated fair with a PE of 26.9. Additionally, Avadh Sugar's PEG ratio is notably at 0.00, indicating potential for growth without the corresponding high valuation. Despite recent underperformance relative to the Sensex, particularly a YTD decline of 17.37% compared to the Sensex's gain of 3.39%, the underlying valuation metrics suggest that Avadh Sugar presents a compelling investment opportunity at its current price.