Is Krishana Phosch. overvalued or undervalued?

Nov 26 2025 08:25 AM IST

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As of November 25, 2025, Krishana Phosch. is fairly valued with a PE ratio of 25.94, an EV to EBITDA of 14.33, and a PEG ratio of 0.15, outperforming peers like Coromandel International and Chambal Fertilizers, and achieving a year-to-date return of 150.47% compared to the Sensex's 9.47%.

Valuation Metrics and Market Position

As of 25 Nov 2025, Krishana Phosch. trades at a price-to-earnings (PE) ratio of approximately 26, which positions it comfortably within the fair valuation range. This is notably lower than some of its more expensive peers such as Coromandel International, which commands a PE above 31, and FACT, which is priced at an exceptionally high multiple. The company’s price-to-book value stands at 6.84, indicating a premium over book value but consistent with expectations for a firm with strong profitability metrics.

Enterprise value multiples further support this fair valuation stance. The EV to EBITDA ratio of 14.33 is moderate, especially when contrasted with Coromandel’s 21.12 and FACT’s extraordinary 321.37. Such multiples suggest that the market is pricing Krishana Phosch. with reasonable expectations of earnings before interest, taxes, depreciation, and amortisation, reflecting steady operational performance without excessive optimism.

Strong Profitability and Growth Indicators

Krishana Phosch. boasts a return on capital employed (ROCE) of 24.86% and a return on equity (ROE) of 26.36%, both figures signalling efficient use of capital and strong profitability. These returns are well above typical industry averages, underscoring the company’s operational strength and competitive positioning within the fertiliser sector.

Moreover, the company’s PEG ratio of 0.15 is particularly attractive, suggesting that its price-to-earnings ratio is low relative to its expected earnings growth. This metric often indicates undervaluation when compared to peers with higher PEG ratios, such as Coromandel’s 0.57 or RCF’s 0.37, implying that Krishana Phosch. may offer better growth-adjusted value.

Stock Performance Relative to Market Benchmarks

Krishana Phosch.’s stock price has demonstrated remarkable returns over multiple time horizons. Year-to-date, the stock has surged over 150%, vastly outperforming the Sensex’s modest 9.5% gain. Over the past year, the stock’s return exceeds 135%, compared to the Sensex’s 6.9%. Even over three and five years, the company’s returns have been substantially higher than the benchmark, reflecting sustained investor confidence and strong business momentum.

However, recent short-term performance shows some correction, with a one-week decline of nearly 3.8%, slightly underperforming the Sensex’s flat movement. This volatility is not uncommon in stocks with strong prior gains and may present buying opportunities for long-term investors.

Comparative Industry Context

Within the fertiliser industry, Krishana Phosch. stands out as fairly valued, especially when compared to peers with either very expensive or attractive valuations. Companies like Chambal Fertilisers and GSFC also trade at fair valuations but with lower PE ratios and EV/EBITDA multiples, reflecting different growth profiles and risk perceptions.

Attractive peers such as Deepak Fertilisers and Paradeep Phosphates trade at lower multiples, indicating potential undervaluation but possibly reflecting differing scale, profitability, or growth prospects. Meanwhile, some companies like GNFC are considered very attractive, trading at even lower PE and EV/EBITDA multiples, but may carry different risk or growth characteristics.

Krishana Phosch.’s dividend yield remains modest at 0.10%, which is typical for growth-oriented companies reinvesting earnings to fuel expansion rather than returning cash to shareholders.

Price and Trading Range Insights

The stock currently trades near ₹502, down slightly from the previous close of ₹511, and well below its 52-week high of ₹619. This price positioning suggests some room for upside if the company continues to deliver on growth and profitability metrics. The 52-week low of ₹175 highlights the significant appreciation investors have witnessed over the past year, reinforcing the stock’s strong performance trajectory.

Given the valuation shift from expensive to fair, investors may find the current price level more reasonable, balancing growth potential with valuation discipline.

Conclusion: Fair Valuation with Strong Fundamentals

Krishana Phosch. is currently fairly valued based on key financial metrics and peer comparisons. Its strong returns on capital and equity, combined with a low PEG ratio, indicate that the company is efficiently generating profits and growing earnings at a rate that justifies its current market price. While the stock has experienced some short-term volatility, its long-term performance significantly outpaces the broader market, reflecting robust business fundamentals.

Investors seeking exposure to the fertiliser sector with a company that balances growth and valuation may find Krishana Phosch. an attractive proposition. However, as with all investments, monitoring sector dynamics, commodity price fluctuations, and regulatory changes remains essential to assess ongoing valuation appropriateness.

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