Is Indian Phosphate overvalued or undervalued?

As of 9 July 2025, the valuation grade for Indian Phosphate has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 15.94, an EV to EBITDA of 10.88, and a ROCE of 12.91%.
In comparison to its peers, Indian Phosphate's PE ratio is notably lower than that of Solar Industries, which stands at 123.39, and significantly higher than Godrej Industries, which has a PE of 39.26. This suggests that while Indian Phosphate is priced lower than some competitors, its valuation remains high relative to its financial performance. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -27.1% compared to the Sensex's 7.75%, reinforcing the view that it is overvalued in the current market context.