Is James Warren Tea overvalued or undervalued?

As of 22 September 2025, the valuation grade for James Warren Tea has moved from very attractive to attractive. The company is currently considered undervalued, given its low valuation ratios. The PE ratio stands at 3.84, while the EV to EBITDA and EV to Sales ratios are exceptionally low at 0.04 and 0.01, respectively. Additionally, the ROE is a strong 18.73%, indicating effective use of equity despite a negative ROCE of -44.38%.
In comparison to peers, James Warren Tea's valuation appears favorable, especially when contrasted with Tata Consumer, which is deemed very expensive with a PE ratio of 84.92, and CCL Products, which has a PE ratio of 38.47 but is also rated as attractive. Notably, James Warren Tea has outperformed the Sensex over the past year, returning 22.90% compared to the Sensex's decline of 2.82%, reinforcing its attractiveness as an investment opportunity.