Is Oriental Aromat. overvalued or undervalued?

As of 17 November 2025, the valuation grade for Oriental Aromatics has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 118.90, an EV to EBITDA of 20.23, and a ROE of 1.48%. In comparison to peers, Solar Industries has a PE of 95.31 and an EV to EBITDA of 58.65, while Godrej Industries, rated as attractive, has a PE of 37.63 and an EV to EBITDA of 40.96.
Despite the fair valuation, Oriental Aromatics has underperformed the Sensex significantly over various timeframes, with a year-to-date return of -15.55% compared to the Sensex's 8.72%. This underperformance, coupled with its high valuation ratios, suggests that while the company may not be overvalued, it faces challenges in justifying its current price levels in the market.