Is Jhandewala Foods overvalued or undervalued?

As of 18 July 2025, the valuation grade for Jhandewala Foods has moved from risky to does not qualify, indicating a significant change in its investment profile. The company appears to be undervalued, with a PE ratio of 11.34, an EV to EBITDA ratio of 14.14, and a ROE of 27.49%. In comparison to its peers, Jhandewala Foods stands out with a much lower PE ratio than Hindustan Unilever at 56.18 and Nestle India at 77.01, both categorized as very expensive.
Despite the company's recent stock performance showing a 21.69% return over the past week, it has struggled with a year-to-date decline of 36.48%. This juxtaposition against the Sensex, which has returned 4.63% year-to-date, further emphasizes the potential undervaluation of Jhandewala Foods in the current market landscape.