Is Britannia Inds. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Britannia Industries has moved from expensive to very expensive. The company is currently considered overvalued based on its high valuation metrics. Key ratios include a PE ratio of 63.99, an EV to EBITDA of 46.19, and a PEG ratio of 8.37, all of which significantly exceed typical industry benchmarks.
In comparison to its peers, Britannia's valuation stands out, with Hindustan Unilever at a PE of 53.63 and Nestle India at a PE of 81.21. Other competitors like Pidilite Industries and Godrej Consumer also reflect high valuations, but Britannia's ratios indicate a premium that may not be justified. Despite recent stock performance showing a 29.12% return year-to-date compared to the Sensex's 6.50%, the elevated valuation metrics suggest that the stock may not sustain its current price levels.