Is Jhandewala Foods overvalued or undervalued?

As of 18 July 2025, Jhandewala Foods has moved from a risky valuation grade to one that does not qualify. Based on the analysis, the company appears to be undervalued. The PE ratio stands at 11.34, which is significantly lower than its peers, such as Hindustan Unilever with a PE of 56.18 and Nestle India at 77.01. Additionally, the EV to EBITDA ratio of 14.14 further supports this undervaluation when compared to the industry averages.
The company's ROCE is 12.46% and ROE is 27.49%, indicating strong profitability metrics relative to its valuation. Despite a recent stock return of 21.69% over the past week, the year-to-date performance shows a decline of 36.48%, which may suggest market skepticism. Overall, Jhandewala Foods is positioned as an attractive investment opportunity given its current valuation metrics compared to its peers.