Is Kothari Ferment. overvalued or undervalued?

As of 17 October 2025, Kothari Ferment. has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of -54.22, an EV to EBITDA of 11.38, and a Price to Book Value of 1.35.
In comparison to its peers, Kothari Ferment. stands out with a significantly negative PE ratio, while Hindustan Unilever and Nestle India are trading at PE ratios of 57.55 and 83.02, respectively, indicating that Kothari is not only undervalued in terms of earnings but also has a lower valuation compared to these industry leaders. Additionally, the company's recent stock performance has been notably poor, with a year-to-date return of -32.04%, contrasting sharply with the Sensex's gain of 7.44% during the same period, reinforcing the perception of overvaluation.