Is James Warren Tea overvalued or undervalued?

As of 23 September 2025, the valuation grade for James Warren Tea has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios reflect this assessment, with a PE ratio of 3.80, a Price to Book Value of 0.71, and a PEG ratio of 0.02, all suggesting that the stock is trading at a substantial discount relative to its earnings and book value.
In comparison to its peers, James Warren Tea stands out with a much lower PE ratio than Tata Consumer, which is at 84.78, and CCL Products at 38.56. The EV to EBITDA ratio for James Warren Tea is notably negative at -0.01, contrasting sharply with the higher valuations of its competitors, reinforcing the undervaluation narrative. Additionally, the company's recent stock performance has outpaced the Sensex over the past year, with a return of 21.53% compared to the Sensex's decline of 3.33%, further supporting the conclusion that James Warren Tea is undervalued in the current market.