Is Oriental Aromat. overvalued or undervalued?

As of 11 July 2025, the valuation grade for Oriental Aromatics has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 36.31, an EV to EBITDA of 17.15, and a PEG ratio of 0.13, which suggests strong growth potential relative to its price.
In comparison to peers, Oriental Aromatics stands out with a much lower PE ratio than Solar Industries at 115.16 and Godrej Industries at 37.69, both of which are classified as very expensive and attractive, respectively. Additionally, the company's dividend yield is notably low at 0.14%, reflecting its focus on reinvestment rather than returning cash to shareholders. Despite recent stock performance trailing the Sensex over the past year, the long-term outlook remains positive, with a 10-year return of 286.53%, indicating strong historical growth potential.