Is Kothari Ferment. overvalued or undervalued?

As of 23 September 2025, Kothari Ferment. has seen its valuation grade change from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, primarily due to its significantly low PE ratio of -52.39 and an EV to EBITDA ratio of 11.12, which is relatively favorable compared to its peers. The Price to Book Value stands at 1.31, suggesting that the stock is trading at a reasonable price relative to its book value.
In comparison to its peers, Kothari Ferment. appears more attractive; for instance, Hind. Unilever has a PE ratio of 55.64 and an EV to EBITDA of 39.26, while Nestle India is even more expensive with a PE of 74.77 and an EV to EBITDA of 48.06. Despite recent underperformance with a year-to-date return of -34.33% compared to the Sensex's 5.07%, the valuation metrics suggest that Kothari Ferment. may present a buying opportunity for investors looking for value in the FMCG sector.