Is Madras Fertilize overvalued or undervalued?

As of 17 November 2025, the valuation grade for Madras Fertilize has moved from risky to does not qualify, indicating a significant shift in its investment profile. The company appears to be overvalued based on its current metrics, with a PE ratio of 16.48, an EV to EBITDA ratio of 10.26, and an ROE of 320.52%. These figures suggest that while the PE ratio is relatively moderate, the high ROE is misleading due to negative capital employed.
In comparison to its peers, Madras Fertilize's valuation stands out unfavorably. Coromandel International, categorized as very expensive, has a PE ratio of 30.62, while Chambal Fertilizers, rated as fair, shows a PE of 10.1. Additionally, Deepak Fertilisers, which is considered attractive, has a PE of 18.49. Given these comparisons, Madras Fertilize's valuation does not justify its current price, especially in light of its recent stock performance, which has underperformed against the Sensex over the past year.