Is Chatha Foods overvalued or undervalued?

As of 14 November 2025, the valuation grade for Chatha Foods has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 33.38, an EV to EBITDA of 19.51, and a ROE of 7.10%.
In comparison with peers, Hindustan Unilever has a PE of 53.87, while Nestle India stands at 81.83, both reflecting higher valuations in the FMCG sector. Chatha Foods' performance has lagged behind the Sensex, with a year-to-date return of -36.36% compared to the Sensex's 8.22%. This further supports the conclusion that Chatha Foods is overvalued in its current market position.