Is Heritage Foods overvalued or undervalued?

As of 17 October 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 assessed as undervalued. 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 stock is trading at a significant discount compared to its earnings and book value.
In comparison to its peers, Heritage Foods stands out with a much lower PE ratio than Hindustan Unilever at 57.55 and Nestle India at 83.02, both of which are considered very expensive. Additionally, Heritage Foods' EV to EBITDA ratio of 5.22 is markedly lower than the industry averages, reinforcing its undervalued status. Despite recent underperformance relative to the Sensex, particularly over the past year, the long-term returns over three and five years are impressive, indicating strong growth potential moving forward.