Is Vishwas Agri overvalued or undervalued?

As of 18 August 2025, Vishwas Agri's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a price-to-earnings (PE) ratio of 9.06, a price-to-book value of 1.32, and an EV to EBITDA ratio of 6.00. These metrics suggest that while the company is not undervalued, it also does not present a compelling investment opportunity at this time.
In comparison to its peers, Vishwas Agri's PE ratio of 9.06 is significantly lower than Kaveri Seed Co.'s attractive PE of 17.31 and MANGALAM SEEDS' very attractive PE of 18.21, highlighting a relative undervaluation among its competitors. Additionally, the company's return on capital employed (ROCE) stands at 16.75%, which is a solid figure, yet the stock has underperformed the Sensex over the past year, declining by 21.29% compared to the index's modest gain of 1.37%. This performance, coupled with the recent grade change, reinforces the conclusion that Vishwas Agri is fairly valued in the current market context.