Is Indian Phosphate overvalued or undervalued?

As of 10 July 2025, the valuation grade for Indian Phosphate has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 15.37, while the EV to EBITDA ratio is 10.57, and the EV to EBIT ratio is 11.59.
In comparison to peers, Indian Phosphate's valuation appears less favorable; for instance, Solar Industries has a significantly higher PE ratio of 118.85 and an EV to EBITDA of 73.180, while Godrej Industries, which is rated attractive, has a PE of 38.91 and an EV to EBITDA of 30.750. Despite the recent stock performance showing a decline of 29.72% year-to-date compared to a 7.23% gain in the Sensex, the current valuation metrics suggest that Indian Phosphate remains overvalued in its sector.