Is Indian Sucrose overvalued or undervalued?

As of 26 March 2025, the valuation grade for Indian Sucrose has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a PE ratio of 5.20, a Price to Book Value of 0.78, and an EV to EBITDA of 3.64. These ratios suggest that the stock is trading at a substantial discount compared to its earnings and book value.
In comparison to its peers, Indian Sucrose stands out as very attractive, especially when juxtaposed against EID Parry with a PE ratio of 27.55 and Balrampur Chini at 28.14. The PEG ratio of Indian Sucrose is also favorable at 0.30, while its return on capital employed (ROCE) is a robust 19.34%. Notably, the stock has outperformed the Sensex over the past year with a return of 12.38% compared to the Sensex's 7.60%, reinforcing its undervalued status in the market.