Is Ponni Sug.Erode overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ponni Sug.Erode has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 21.86, an EV to EBITDA of 10.63, and a Price to Book Value of 0.45. In comparison to peers, EID Parry is categorized as very expensive with a PE of 23.36, while Balrampur Chini is rated fair with a PE of 22.4, indicating that Ponni Sug.Erode's valuation is not justified relative to its peers.
The company's recent stock performance has been poor, with a year-to-date return of -31.80%, significantly underperforming the Sensex, which has returned 7.44% in the same period. This underperformance, combined with the company's current valuation metrics, reinforces the conclusion that Ponni Sug.Erode is overvalued in the current market environment.