Is Indian Phosphate overvalued or undervalued?

As of 4 July 2025, the valuation grade for Indian Phosphate has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 15.81, an EV to EBITDA of 10.81, and a ROCE of 12.91%.
When compared to peers, Indian Phosphate's valuation stands out as notably high, especially against Solar Industries, which has a PE of 125.92, and Godrej Industries, which is rated attractive with a PE of 40.05. The disparity in these ratios suggests that Indian Phosphate is not only overvalued but also lacks the growth potential indicated by its PEG Ratio of 0.00. Additionally, the company's recent stock performance shows a decline of 27.73% year-to-date, contrasting sharply with the Sensex's gain of 7.68%, further reinforcing the notion of overvaluation.