Is Rama Phosphates overvalued or undervalued?

As of 24 July 2025, the valuation grade for Rama Phosphates has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 20.49, an EV to EBITDA of 10.65, and a PEG ratio of 0.11, which indicates strong growth potential relative to its price.
In comparison to its peers, Rama Phosphates stands out against Coromandel International, which is considered very expensive with a PE of 40.16, and Chambal Fertilizers, which is attractive with a PE of 13.43. The company's recent stock performance has significantly outpaced the Sensex, with a year-to-date return of 68.88% compared to the Sensex's 5.18%, reinforcing the notion that it is fairly valued in the current market context.