Is Heritage Foods overvalued or undervalued?

As of 17 October 2025, Heritage Foods' valuation grade has moved from fair to attractive, indicating a positive shift in its market position. The company is currently considered undervalued, particularly when compared to its peers in the FMCG sector. Key ratios include a PE ratio of 25.98, an EV to EBITDA of 5.22, and a Price to Book Value of 0.43, which suggest that the company's earnings and asset valuations are favorable relative to its stock price.
In comparison to its peers, Heritage Foods stands out with a significantly lower PE ratio than Hindustan Unilever at 57.55 and Nestle India at 83.02, both of which are categorized as very expensive. Additionally, Heritage Foods' EV to EBITDA ratio of 5.22 is much more attractive than the high multiples seen in its competitors, reinforcing its undervalued status. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a decline of 23.24% compared to the Sensex's 3.64% increase, the long-term growth potential remains strong, as evidenced by a remarkable 202.02% return over three years.