Is Deepak Fertiliz. overvalued or undervalued?

As of 25 June 2025, the valuation grade for Deepak Fertilizers has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently deemed overvalued, with a PE ratio of 21.72, a Price to Book Value of 3.25, and an EV to EBITDA ratio of 12.37. In comparison to its peers, Deepak Fertilizers stands out with a lower PEG ratio of 0.20, while competitors like Coromandel International and Paradeep Phosphates exhibit higher PE ratios of 38.86 and 24.5, respectively.
Despite the recent strong performance, with a year-to-date return of 33.85% compared to the Sensex's 5.91%, the current valuation metrics suggest that Deepak Fertilizers may not sustain its high price levels. The company's ROCE of 15.59% and ROE of 14.97% are commendable but do not justify the elevated valuation in the context of its peers. Overall, the analysis indicates that Deepak Fertilizers is overvalued at this time.