Is Narmada Agrobase overvalued or undervalued?

As of 28 July 2025, the valuation grade for Narmada Agrobase has moved from very expensive to expensive, indicating a slight improvement in its valuation perspective. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 19.80, an EV to EBITDA ratio of 16.37, and a PEG ratio of 0.46, which suggests that while the company has growth potential, its current price may not reflect its earnings growth adequately.
In comparison with peers, Narmada Agrobase's PE ratio stands in stark contrast to Jain Irrigation, which has a significantly higher PE of 107.09, and Bombay Super Hyb at 53.16. This disparity highlights that Narmada Agrobase may be priced too high relative to its earnings potential, especially when considering its lower growth metrics. Additionally, recent stock performance shows a decline of 5.99% over the past week, contrasting with the Sensex's decline of only 1.59%, further emphasizing the potential overvaluation of the stock.