Is Britannia Inds. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Britannia Industries has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios highlight this assessment: the PE ratio stands at 66.97, the Price to Book Value is 33.73, and the EV to EBITDA is 46.00, all of which are considerably higher than industry norms.
In comparison to peers, Britannia’s PE ratio is notably higher than Hindustan Unilever's 58.87 and Dabur India's 55.17, both of which are also classified as very expensive. Furthermore, while Britannia boasts a high ROCE of 68.78% and ROE of 50.44%, these returns do not justify the elevated valuation levels. The stock has performed well recently, with a year-to-date return of 27.60% compared to the Sensex's 3.30%, but this performance does not mitigate the concerns regarding its current overvaluation.