Is Heritage Foods overvalued or undervalued?

As of 24 September 2025, the valuation grade for Heritage Foods has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 27.39, an EV to EBITDA of 15.28, and a ROCE of 29.35%.
When compared to peers, Heritage Foods stands out with a significantly lower PE ratio than Hindustan Unilever, which has a PE of 56.54, and Nestle India at 75.61. This suggests that Heritage Foods offers a more attractive valuation relative to its competitors. Additionally, the company's stock has outperformed the Sensex over the past three years, with a return of 236.66% compared to the Sensex's 40.65%, reinforcing the notion of its undervaluation.