Is Heritage Foods overvalued or undervalued?

As of 16 May 2025, the valuation grade for Heritage Foods has moved from very attractive to attractive. The company is currently considered undervalued, with a PE ratio of 22.37, an EV to EBITDA ratio of 12.89, and a PEG ratio of 0.27, indicating strong growth potential relative to its price.
In comparison to its peers, Heritage Foods stands out with its attractive valuation, especially when contrasted with Hindustan Unilever's PE ratio of 53.88 and Nestle India's PE ratio of 75.2, both of which are categorized as very expensive. Additionally, Heritage Foods boasts a robust ROCE of 29.35% and an ROE of 20.00%, further solidifying its position in the FMCG sector. Notably, the company has outperformed the Sensex in the short term, with a 1-week return of 13.80% compared to the Sensex's 1.42%.