Is Bharat Agri Fert overvalued or undervalued?

As of 18 November 2025, Bharat Agri Fert's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently assessed as overvalued, with a PE ratio of 204.35, an EV to EBITDA ratio of 42.26, and a Price to Book Value of 3.65. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about its sustainability.
In comparison to its peers, Bharat Agri Fert's valuation metrics are notably higher; for instance, Coromandel International has a PE ratio of 31 and an EV to EBITDA of 20.53, while Chambal Fertilizers shows a PE of 10 and an EV to EBITDA of 7.00. This stark contrast highlights that Bharat Agri Fert is significantly more expensive than its competitors in the fertilizers industry. Additionally, the company's stock has underperformed against the Sensex over the past year, with a return of -55.84% compared to the Sensex's 9.48%, further reinforcing the notion that the stock may be overvalued at its current price.