Is Kothari Ferment. overvalued or undervalued?

As of 1 October 2025, the valuation grade for Kothari Ferment. has moved from attractive to very attractive. The company is currently undervalued, as indicated by its PE ratio of -50.91, an EV to EBITDA of 10.92, and a Price to Book Value of 1.27. In comparison to its peers, Kothari Ferment. stands out with a PEG ratio of 0.00, while Hindustan Unilever has a PE of 56.02 and Nestle India shows a PE of 74.75, both categorized as very expensive.
Despite recent stock performance showing a decline, with a YTD return of -36.19% compared to the Sensex's 3.64%, the underlying valuation metrics suggest that Kothari Ferment. presents a compelling investment opportunity given its very attractive rating and significantly lower valuation ratios compared to its peers in the FMCG sector.