Is Goel Food overvalued or undervalued?

As of 16 September 2025, Goel Food's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued based on its financial ratios, which include a PE ratio of 6.51, an EV to EBITDA of 6.43, and a ROE of 22.79%. Compared to its peers, Goel Food's valuation metrics are significantly lower; for instance, Hindustan Unilever has a PE ratio of 57.05, while Nestle India stands at 77.14, both categorized as very expensive.
In terms of performance, Goel Food has underperformed relative to the Sensex, with a year-to-date return of -10.86% compared to the Sensex's 5.43%. This underperformance, combined with its fair valuation status, suggests that while the stock is not currently overvalued, it may lack the growth potential seen in its more expensive peers. Overall, Goel Food appears to be fairly valued in the current market context.