Is Avro India overvalued or undervalued?

As of 1 October 2025, Avro India has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 55.04, an EV to EBITDA of 33.24, and a Price to Book Value of 2.40. In comparison to its peers, Supreme Industries has a PE ratio of 59.83 and an EV to EBITDA of 38.41, while Finolex Industries shows a more attractive PE ratio of 31.24 and an EV to EBITDA of 28.93, indicating that Avro India is positioned relatively well within its industry.
Despite its fair valuation, Avro India has underperformed the Sensex in recent periods, particularly year-to-date with a return of -28.31% compared to the Sensex's 3.64%. This underperformance, along with a low ROCE of 5.42% and ROE of 4.36%, suggests that while the valuation is fair, there may be underlying operational challenges that could affect future performance.