Is Baba Food overvalued or undervalued?

As of 17 September 2025, the valuation grade for Baba Food has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 14.21, an EV to EBITDA of 10.07, and a Price to Book Value of 0.97, which indicate a reasonable valuation compared to its peers.
In comparison to industry leaders, Baba Food's PE Ratio of 14.21 is significantly lower than Hindustan Unilever's 56.83 and Nestle India's 77.37, both of which are categorized as very expensive. Additionally, the PEG Ratio for Baba Food stands at 0.00, suggesting potential for growth without the associated high costs seen in its peers. While Baba Food has underperformed the Sensex year-to-date with a return of -37.24% compared to the Sensex's 7.13%, its current valuation metrics suggest it is positioned more attractively relative to its expensive competitors.