Is Mawana Sugars overvalued or undervalued?

As of 1 October 2024, Mawana Sugars has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, as indicated by its low PE ratio of 7.49, a price-to-book value of 0.85, and an EV to EBITDA of 6.68. These metrics suggest that the stock is trading at a significant discount compared to its intrinsic value.
In comparison with its peers, Mawana Sugars stands out with a PEG ratio of 0.15, while EID Parry and Balrampur Chini, which are considered very expensive, have PE ratios of 27.55 and 28.14, respectively. Additionally, Mawana Sugars has a robust dividend yield of 6.53% and a return on equity (ROE) of 11.39%, further reinforcing its attractiveness. Notably, the company's stock has outperformed the Sensex over the past month, with a return of 25.23% compared to the Sensex's 3.86%, highlighting its strong market performance.