Is G M Breweries overvalued or undervalued?

As of 17 September 2025, G M Breweries has moved from a valuation grade of very attractive to fair. The company is currently fairly valued. Key ratios include a PE ratio of 12.69, an EV to EBITDA of 13.28, and a ROE of 13.85%. In comparison to its peers, Varun Beverages has a significantly higher PE ratio of 56.04, while United Spirits stands at 62, indicating that G M Breweries is more reasonably priced within the industry.
Despite the recent decline in stock performance, with a year-to-date return of -10.74% compared to the Sensex's 5.83%, the company has shown resilience over a longer horizon, with a 5-year return of 126.35% versus the Sensex's 112.14%. This suggests that while the current valuation is fair, G M Breweries may still hold potential for growth relative to its peers.