Is Chatha Foods overvalued or undervalued?

As of 14 November 2025, Chatha Foods has moved from an attractive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. The PE ratio stands at 33.38, while the EV to EBITDA ratio is 19.51, and the Price to Book Value is 2.37. These ratios indicate a premium valuation compared to peers.
In comparison to its industry peers, Chatha Foods' PE ratio is significantly lower than Hindustan Unilever's 53.87 and Nestle India's 81.83, both of which are also classified as very expensive. Despite having a lower PEG ratio of 0.00, which typically suggests growth potential, the overall valuation metrics indicate that Chatha Foods is not justified at its current price level. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -36.36% compared to the Sensex's 8.22%.