Is Natl.Fertilizer overvalued or undervalued?

As of 22 August 2025, the valuation grade for National Fertilizer has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 31.46, an EV to EBITDA of 11.44, and a Price to Book Value of 1.78. Compared to peers, Coromandel International is considered very expensive with a PE ratio of 35.91, while Chambal Fertilizers is attractive with a PE of 12.85.
Despite the fair valuation, National Fertilizer's recent performance shows a decline, with a year-to-date return of -15.17%, contrasting sharply with the Sensex's gain of 4.05% during the same period. This underperformance, coupled with a relatively low ROCE of 5.10% and a dividend yield of only 0.20%, suggests that while the stock is fairly valued, it may not be the most compelling investment opportunity in the current market landscape.