Is Rama Phosphates overvalued or undervalued?

As of 29 August 2025, the valuation grade for Rama Phosphates has moved from expensive to fair, indicating a reassessment of its market position. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 18.34, an EV to EBITDA of 9.71, and a PEG Ratio of 0.09, which suggests that the stock may be undervalued relative to its growth prospects.
In comparison to its peers, Rama Phosphates stands out with a PE Ratio that is significantly lower than Coromandel International's 34.5 and Paradeep Phosphates' 22.11, both of which are classified as very expensive. Additionally, while Chambal Fertilizers shows a more attractive PE of 12.37, Rama's valuation appears more favorable given its growth potential reflected in the PEG Ratio. Notably, the company's stock has outperformed the Sensex year-to-date, with a return of 51.13% compared to the Sensex's 2.14%, reinforcing the notion that it is positioned well in the market.