Is Ponni Sug.Erode overvalued or undervalued?

Oct 20 2025 08:06 AM IST
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As of October 17, 2025, Ponni Sug.Erode is considered overvalued with a valuation grade of expensive, reflected by a PE ratio of 21.86, an EV to EBITDA of 10.63, and low returns on equity and capital employed, despite a significant stock decline of 40.74% over the past year.
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 has a PE ratio of 23.36 and an EV to EBITDA of 5.36, while Balrampur Chini is rated fair with a PE ratio of 22.4 and an EV to EBITDA of 17.84.

Despite the recent stock performance, which shows a significant decline of 40.74% over the past year compared to a 3.64% increase in the Sensex, the valuation metrics suggest that Ponni Sug.Erode is not positioned favorably in the market relative to its peers. The company's low return on equity (ROE) of 2.04% and return on capital employed (ROCE) of 3.19% further reinforce the conclusion of overvaluation.
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