Is Avadh Sugar overvalued or undervalued?

As of 8 October 2025, the valuation grade for Avadh Sugar has moved from very attractive to attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 12.46, an EV to EBITDA of 9.10, and a Price to Book Value of 0.80, which suggest that the stock is trading at a discount compared to its intrinsic value.
In comparison to its peers, Avadh Sugar's PE Ratio is significantly lower than that of EID Parry, which stands at 24.19, and Balrampur Chini at 23.13, indicating that Avadh Sugar may present a more favorable investment opportunity. Additionally, its EV to EBITDA ratio is more attractive than that of Balrampur Chini, which is at 18.30. Despite recent underperformance relative to the Sensex over the past year, where Avadh Sugar declined by 43.07% compared to a mere 0.17% gain in the Sensex, the company's current valuation metrics suggest it may be a compelling buy for investors looking for value in the sugar industry.