Is Oriental Aromat. overvalued or undervalued?

As of 17 July 2025, the valuation grade for Oriental Aromatics has moved from very attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 39.95, an EV to EBITDA of 18.50, and a PEG ratio of 0.14, which indicates a potential for growth relative to its price.
In comparison to its peers, Oriental Aromatics has a PE ratio that is slightly higher than Godrej Industries at 39.33, which is rated as attractive, while significantly lower than Solar Industries, which is considered very expensive at 113.53. Additionally, the company's ROCE stands at 6.86% and ROE at 5.18%, suggesting moderate returns on capital and equity. Despite a recent underperformance compared to the Sensex over the past year, the stock has shown resilience with a 6.02% return over the past week, indicating some positive momentum.