Is Britannia Inds. overvalued or undervalued?

As of 7 November 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 reveal a PE Ratio of 63.99, an EV to EBITDA of 46.19, and a Price to Book Value of 3.97, all of which are notably high compared to industry standards.
In comparison to peers, Hindustan Unilever has a PE Ratio of 53.63 and an EV to EBITDA of 33.22, while Nestle India stands at a PE Ratio of 81.21 and an EV to EBITDA of 49.92. These figures suggest that Britannia is trading at a premium relative to its competitors. Additionally, while the stock has outperformed the Sensex with a year-to-date return of 29.12% compared to the Sensex's 6.50%, the elevated valuation metrics raise concerns about sustainability in the long term.