Is Balgopal Commer. overvalued or undervalued?

Jun 09 2025 04:21 PM IST
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As of February 14, 2025, Balgopal Commer. is considered a risky investment due to its high PE ratio of 38.76 and negative EV to EBIT and EV to EBITDA, despite strong ROE and impressive stock performance compared to the Sensex.
As of 14 February 2025, the valuation grade for Balgopal Commer. has moved from very expensive to risky. The company is currently assessed as overvalued, primarily due to its high PE ratio of 38.76 and an alarming EV to EBIT and EV to EBITDA of -245.27, indicating significant operational challenges. Additionally, the ROE stands at 22.15%, which is relatively strong but does not compensate for the negative earnings before interest and taxes.

In comparison to its peers, Balgopal Commer. has a PE ratio that is lower than Adani Enterprises Ltd. at 70.92 and SRF Ltd. at 73.81, but significantly higher than Tata Chemicals Ltd. at 71.97, which is rated as very attractive. The company's recent stock performance has outpaced the Sensex, with a remarkable 1-year return of 265.56% compared to the Sensex's 7.57%. However, the overall valuation metrics suggest that Balgopal Commer. is not a favorable investment at this time.
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Our weekly and monthly stock recommendations are here
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