Is James Warren Tea overvalued or undervalued?

As of 3 October 2025, the valuation grade for James Warren Tea has moved from very attractive to attractive. The company is currently assessed as undervalued, given its low PE ratio of 3.85, an EV to EBITDA of 0.05, and a Price to Book Value of 0.72. These metrics suggest that the stock is trading at a significant discount compared to its intrinsic value.
In comparison to its peers, James Warren Tea's valuation stands out, especially against Tata Consumer, which is classified as very expensive with a PE ratio of 85.61, and CCL Products, which is also attractive with a PE of 36.76. Notably, the company's ROE is 18.73%, indicating a strong return on equity relative to its peers. While the stock has underperformed the Sensex year-to-date, it has shown impressive returns over a longer horizon, with a 5-year return of 209.60% compared to the Sensex's 109.85%.