Is Kothari Ferment. overvalued or undervalued?

As of 1 October 2025, Kothari Ferment. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of -50.91, an EV to EBITDA of 10.92, and a Price to Book Value of 1.27. Compared to its peers, Kothari Ferment. stands out significantly; for instance, Hindustan Unilever has a PE ratio of 56.02 and an EV to EBITDA of 39.53, while Nestle India shows even higher figures at 74.75 and 48.05, respectively.
Despite its very attractive valuation, Kothari Ferment. has faced significant stock performance challenges, with a year-to-date return of -36.19%, contrasting sharply with the Sensex's positive return of 3.64%. This discrepancy highlights the potential for recovery and growth in the company's valuation, reinforcing its status as undervalued in the current market landscape.