Is Avro India overvalued or undervalued?

As of 29 September 2025, the valuation grade for Avro India has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios reflect this status, with a PE ratio of 58.55, an EV to EBITDA of 35.65, and an EV to Capital Employed of 3.20, all of which are significantly higher than industry norms.
In comparison to its peers, Avro India's PE ratio is lower than Supreme Industries at 60.1 and Astral at 76.16, but still indicates a premium valuation. Finolex Industries, which has a PE of 31.46, presents a more attractive valuation in the same sector. Despite recent stock performance showing a 12.75% return over the past week against a -2.18% return for the Sensex, the long-term outlook remains concerning with a year-to-date decline of 23.75%, suggesting that the current valuation may not be sustainable.