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 ratio of 33.24, and a Price to Book Value of 2.40. In comparison to its peers, Supreme Industries and Astral are both categorized as very expensive, with PE ratios of 59.83 and 76.45, respectively, indicating that Avro India is more attractively priced relative to these competitors.
Despite the fair valuation, Avro India has experienced a significant decline in stock performance, with a year-to-date return of -28.31%, contrasting with a positive 3.64% return for the Sensex. This discrepancy suggests that while the company is fairly valued based on its financial metrics, market sentiment may be weighing heavily on its stock price.