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 ratios. The price-to-earnings (PE) ratio stands at -54.22, indicating significant losses, while the price-to-book value is 1.35. Additionally, the EV to EBITDA ratio is 11.38, which is relatively high compared to industry norms.
In comparison to peers, Kothari Ferment. shows stark contrasts, particularly with Hindustan Unilever, which has a PE ratio of 57.55, and Nestle India at 83.02, both categorized as very expensive. The company's return metrics are concerning, with a year-to-date return of -32.04%, significantly underperforming the Sensex, which has gained 7.44% in the same period. Overall, Kothari Ferment. appears to be overvalued given its negative earnings and the high valuation ratios relative to its peers.