Is Best Agrolife overvalued or undervalued?

As of 14 November 2025, Best Agrolife's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be overvalued given its current valuation metrics. The PE ratio stands at 55.65, significantly higher than peers such as UPL with a PE of 26.92 and Rallis India at 28.57. Additionally, Best Agrolife's EV to EBITDA ratio of 8.86 is also elevated compared to UPL's 10.45, suggesting that investors are paying a premium relative to earnings potential.
In terms of financial performance, Best Agrolife's ROCE is at 6.91% and ROE is only 1.66%, which are low figures that raise concerns about its profitability relative to its valuation. The company's recent stock performance has been poor, with a year-to-date decline of 52.2%, contrasting sharply with the Sensex's gain of 8.22% over the same period. Overall, these factors suggest that Best Agrolife is overvalued in the current market environment.