Is Proventus Agro overvalued or undervalued?

As of 24 September 2025, Proventus Agro's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 54.59, while the EV to EBITDA ratio is 37.93, and the PEG ratio is notably high at 49.97, suggesting that the stock price may not be justified by its earnings growth prospects.
In comparison to its peers, Proventus Agro's PE ratio is lower than Hindustan Unilever's 56.54 and significantly lower than Nestle India's 75.61, yet it remains elevated relative to the industry average. The company's return on capital employed (ROCE) is 7.40%, and return on equity (ROE) is 5.68%, which are relatively modest figures. Additionally, while Proventus Agro has outperformed the Sensex in the short term with a 1-week return of 20.68%, its year-to-date performance shows a decline of 30.26%, further supporting the view that the stock may be overvalued at its current price of 1165.80.