Is Avadh Sugar overvalued or undervalued?

As of 3 October 2025, the valuation grade for Avadh Sugar has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued based on its key financial ratios. The PE ratio stands at 12.25, while the EV to EBITDA ratio is 9.04, and the Price to Book Value is 0.79, suggesting that the stock is trading at a discount compared to its intrinsic value.
In comparison to its peers, Avadh Sugar's valuation appears favorable. For instance, EID Parry is categorized as very expensive with a PE ratio of 23.87, and Balrampur Chini is rated fair with a PE of 22.43. This positions Avadh Sugar as a more attractive investment option within the sugar industry. Additionally, while the stock has underperformed the Sensex in the short term, it has shown significant growth over the past five years, with a return of 143.47% compared to the Sensex's 109.85%.