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 positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 21.43, an EV to EBITDA of 18.56, and a ROCE of 28.89%, which suggest strong operational efficiency and profitability.
In comparison to its peers, Kaveri Seed Co. has a higher PE ratio than Nath Bio-Genes (10.63) and City Crops Agro (12.50), both of which are classified as very attractive. Despite this, Kaveri's PEG ratio of 9.04 indicates that it may still offer growth potential relative to its price. Additionally, the stock has outperformed the Sensex over the past year, with a return of 22.17% compared to the Sensex's 4.23%, reinforcing the argument for its undervaluation.