Is City Crops Agro overvalued or undervalued?

As of 12 September 2025, the valuation grade for City Crops Agro has moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 12.83, an EV to EBITDA of 12.31, and a Price to Book Value of 1.09, which are favorable compared to its peers.
In comparison, Kaveri Seed Co. has a PE ratio of 18.57 and an EV to EBITDA of 15.80, while Nath Bio-Genes stands out with a lower PE ratio of 7.42 and an EV to EBITDA of 6.77. These comparisons highlight City Crops Agro's relative valuation strength within the industry. Despite a challenging year-to-date return of -34.83% compared to a positive 4.82% for the Sensex, the company's current valuation suggests it may present a compelling buying opportunity for investors.