Is Bharat Agri Fert overvalued or undervalued?

As of 17 November 2025, Bharat Agri Fert has moved from a risky valuation grade to one that does not qualify. The company is currently overvalued, as indicated by its high price-to-earnings (PE) ratio of 208.29, an EV to EBITDA ratio of 42.84, and a price-to-book value of 3.72. These ratios starkly contrast with peers such as Chambal Fertilizers, which has a PE of 10.1 and an EV to EBITDA of 7.07, and Deepak Fertilizers, with a PE of 18.49 and an EV to EBITDA of 11.22, both of which are significantly lower.
The valuation metrics suggest that Bharat Agri Fert is not only overvalued compared to its peers but also reflects poor financial performance, with a return on equity (ROE) of just 1.79% and a return on capital employed (ROCE) of 0.52%. Additionally, the company's stock has underperformed the Sensex over various periods, including a year-to-date decline of 52.87% compared to the Sensex's gain of 8.72%. This further reinforces the conclusion that Bharat Agri Fert is currently overvalued in the market.