Is Bharat Rasayan overvalued or undervalued?

As of 18 July 2025, Bharat Rasayan's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 33.08, an EV to EBITDA of 25.51, and a PEG ratio of 0.70, which suggests that while the company has growth potential, its current price may not justify the earnings growth.
In comparison to its peers, Bharat Rasayan's PE ratio is lower than P I Industries at 37.67 but higher than Dhanuka Agritech at 27.06, indicating a mixed positioning within the industry. Additionally, UPL, which is rated very attractive, has a significantly higher PE ratio of 41.43, suggesting that investors are willing to pay a premium for its growth prospects. Despite recent stock performance showing a 9.48% return over the past month compared to a 0.38% return for the Sensex, the overall valuation still leans towards overvaluation when considering the broader market context.