Is Baba Food overvalued or undervalued?

As of 10 September 2025, the valuation grade for Baba Food has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 14.02, an EV to EBITDA of 8.80, and a ROE of 7.33%.
In comparison to its peers, Baba Food's PE ratio is significantly lower than Hindustan Unilever's 58.37 and Nestle India's 78, both of which are categorized as very expensive. Despite Baba Food's relatively lower valuation metrics, the overall market sentiment suggests that it is overvalued given the current economic conditions and its recent stock performance, which has underperformed against the Sensex, with a year-to-date return of -38.08% compared to the Sensex's 5.62%.