Is Anjani Foods overvalued or undervalued?

As of 27 December 2024, Anjani Foods has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 60.39, an EV to EBITDA of 21.43, and a ROCE of 9.09%.
In comparison to its peers, Anjani Foods maintains a more favorable valuation despite its high PE ratio when juxtaposed with Hindustan Unilever's PE of 53.88 and Nestle India's significantly higher PE of 75.2. While the company has underperformed against the Sensex in the short term, it has demonstrated remarkable long-term growth with a 5-year return of 927.14% compared to the Sensex's 143.13%. This indicates a strong potential for future appreciation, reinforcing the conclusion that Anjani Foods is undervalued in the current market context.