Is Bhaskar Agrochem overvalued or undervalued?

As of 4 July 2025, Bhaskar Agrochem's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE ratio of 15.94, an EV to EBITDA of 9.09, and a PEG ratio of 0.13, which suggest that the stock is trading at a favorable valuation compared to its earnings growth potential.
In comparison to its peers, Bhaskar Agrochem's PE ratio is substantially lower than that of P I Industries at 38.43 and Bayer CropScience at 50.79, both categorized as very expensive. Additionally, UPL, which is also classified as very attractive, has a much higher PE ratio of 41.04. The company's strong return on capital employed (ROCE) of 19.30% and return on equity (ROE) of 21.97% further reinforce its undervaluation. Notably, Bhaskar Agrochem has outperformed the Sensex over various time frames, including a 54.81% return over the past month compared to the Sensex's 3.01%, highlighting its strong market performance.