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 its perceived investment potential. The company is currently considered undervalued, supported by key ratios such as a PE Ratio of 21.43, an EV to EBITDA of 18.56, and a ROCE of 28.89%.
In comparison to its peers, Kaveri Seed Co. has a higher PE Ratio than Nath Bio-Genes at 10.63 and City Crops Agro at 12.50, both of which are classified as very attractive. Despite its higher valuation metrics, Kaveri's strong performance is evident in its year-to-date return of 33.98%, significantly outpacing the Sensex return of 6.77% during the same period. This suggests that the market may still be undervaluing Kaveri Seed Co. relative to its growth potential.