Is Gujarat Alkalies overvalued or undervalued?

As of 10 November 2025, the valuation grade for Gujarat Alkalies has moved from very expensive to very attractive. This indicates a significant reassessment of the company's value, suggesting it is currently undervalued. Key ratios reflect this: the PE ratio stands at an extraordinarily high 27029.69, while the EV to EBITDA is a more reasonable 10.28, and the Price to Book Value is notably low at 0.07.
In comparison to peers, Gujarat Alkalies appears to be in a favorable position despite its high PE ratio. For instance, Solar Industries has a PE of 96.11 and an EV to EBITDA of 59.13, while Godrej Industries shows a PE of 35.42 and an EV to EBITDA of 28.71. These comparisons further support the conclusion that Gujarat Alkalies is undervalued relative to its peers. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -26.40% compared to the Sensex's 6.91%, reinforcing the notion that it may be undervalued in the current market.