Is Heritage Foods overvalued or undervalued?

As of 17 October 2025, Heritage Foods has moved from a fair to an attractive valuation grade, indicating a shift towards being undervalued. The company currently exhibits a PE ratio of 25.98, an EV to EBITDA of 5.22, and a Price to Book Value of 0.43. These ratios suggest that Heritage Foods is positioned favorably compared to its peers, particularly when contrasted with Hindustan Unilever's PE ratio of 57.55 and Nestle India's PE ratio of 83.02, both of which are significantly higher.
Given these metrics, Heritage Foods appears to be undervalued in the current market environment. Despite recent stock performance lagging behind the Sensex, with a one-year return of -23.24% compared to the Sensex's 3.64%, the long-term outlook remains strong, evidenced by a remarkable 3-year return of 202.02%. This combination of attractive valuation ratios and favorable peer comparisons supports the conclusion that Heritage Foods presents a compelling investment opportunity.