Is Balaji Phos. overvalued or undervalued?

As of 9 July 2025, the valuation grade for Balaji Phos. has moved from does not qualify to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 41.96, an EV to EBITDA of 27.38, and a Price to Book Value of 9.49, all of which indicate a high valuation relative to earnings and book value.
In comparison to its peers, Balaji Phos. has a significantly higher PE Ratio than Coromandel International, which stands at 37.9, and a much higher EV to EBITDA compared to Chambal Fertilizers at 8.55. This suggests that Balaji Phos. is trading at a premium compared to its industry counterparts. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -3.49% compared to a slight gain of 0.09% for the index, further reinforcing the notion that it is overvalued.