Is Kaveri Seed Co. overvalued or undervalued?

As of 4 July 2025, Kaveri Seed Co. has moved from a fair to an attractive valuation grade, indicating a shift in perception regarding its market position. The company is currently considered undervalued, with a PE ratio of 21.43, an EV to EBITDA ratio of 18.56, and a ROCE of 28.89%. In comparison to its peers, Kaveri Seed Co.'s valuation metrics stand out, particularly when contrasted with Nath Bio-Genes, which has a PE ratio of 10.63, and Mangalam Seeds, with a PE of 18.87.
Despite a recent decline in stock price over the past month, Kaveri Seed Co. has shown strong performance year-to-date with a return of 33.98%, significantly outpacing the Sensex's 6.77% return during the same period. This performance, alongside its attractive valuation metrics, reinforces the view that Kaveri Seed Co. is currently undervalued in the market.