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 shift in its assessment. The company's current valuation suggests it is undervalued, especially when considering its PE ratio of 11.34, EV to EBIT of 15.60, and ROE of 27.49%. These ratios position Jhandewala Foods favorably compared to its peers, such as Hindustan Unilever with a PE of 56.18 and Nestle India at 77.01, both of which are deemed very expensive.
Despite the company's recent stock performance showing a 21.69% return over the past week, it has faced a year-to-date decline of 36.48%, contrasting sharply with the Sensex's 4.63% gain. This divergence further supports the notion that Jhandewala Foods is undervalued relative to its market peers and overall market performance.