Is Bajaj Hindusthan overvalued or undervalued?

As of 30 May 2025, Bajaj Hindusthan's valuation grade has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly when examining key financial ratios. The price-to-earnings (PE) ratio stands at -217.14, while the price-to-book value is 0.73, and the EV to EBITDA ratio is 22.75. These figures suggest that the market may not fully recognize the company's potential, especially given the low price-to-book ratio.
In comparison to its peers, Bajaj Hindusthan's valuation appears favorable. For instance, EID Parry has a PE ratio of 27.55, while Balrampur Chini's PE is 28.14, both indicating a premium valuation relative to Bajaj Hindusthan. Additionally, the company's recent stock performance has outpaced the Sensex over the past week and month, with returns of 1.56% and 29.68%, respectively, highlighting a positive momentum that could further support its undervalued status.