Is James Warren Tea overvalued or undervalued?

As of 8 October 2025, the valuation grade for James Warren Tea has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, supported by a low PE ratio of 3.78, a price to book value of 0.71, and a PEG ratio of 0.02, all of which suggest that the stock is trading at a substantial discount compared to its earnings growth potential.
In comparison to its peers, James Warren Tea stands out with its very attractive valuation, particularly when contrasted with Tata Consumer, which is deemed very expensive with a PE ratio of 84.1, and CCL Products, which has a PE of 35.89 but is still considered attractive. The company's recent stock performance has outpaced the Sensex over the past year, returning 9.80% compared to the Sensex's 0.17%, reinforcing the notion that it is undervalued relative to its growth prospects.