Is Narmada Agrobase overvalued or undervalued?

As of 18 July 2025, Narmada Agrobase's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key ratios, including a PE ratio of 19.65, an EV to EBIT of 16.99, and an EV to EBITDA of 16.26. In comparison to peers, Jain Irrigation, which is rated attractive, has a significantly higher PE ratio of 107.8, while Krishival Foods is categorized as very expensive with a PE of 65.86.
Overall, Narmada Agrobase appears overvalued in the current market context. Although it has a solid ROE of 21.29% and a PEG ratio of 0.45, the high valuation metrics suggest that the stock may not offer sufficient upside potential at its current price of 21.19. Additionally, while the company has outperformed the Sensex in the short term with a 1-week return of 24.28%, its longer-term performance has been lackluster, with a 1-year return of -4.07% compared to the Sensex's 0.51%.