Is Uttam Sug.Mills overvalued or undervalued?

As of 14 November 2025, the valuation grade for Uttam Sug.Mills has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a PE ratio of 8.08, an EV to EBITDA of 6.97, and a PEG ratio of 0.15, all of which are significantly lower than many of its peers. For instance, EID Parry is considered very expensive with a PE ratio of 20.37, while Balrampur Chini has a PE of 23.23, highlighting Uttam Sug.Mills' relative affordability.
In comparison to its peers, Uttam Sug.Mills stands out with its attractive valuation metrics, particularly in the context of the sugar industry. The company's ROCE of 10.35% and ROE of 11.21% further reinforce its operational efficiency. Although the stock has underperformed against the Sensex over the past year, with a return of -17.76% compared to the Sensex's 9.00%, the current valuation suggests potential for recovery and growth in the future.