Is Kothari Ferment. overvalued or undervalued?

As of 27 October 2025, Kothari Ferment. has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, primarily due to its significant negative PE ratio of -51.79, a Price to Book Value of 1.29, and an EV to EBITDA of 11.04. These ratios suggest that the market may not be fully recognizing the company's potential, especially when compared to peers like Hindustan Unilever, which has a PE ratio of 55.8, and Nestle India with a PE of 82.61, both categorized as very expensive.
Despite the company's recent struggles, including a year-to-date stock return of -35.09% compared to the Sensex's 8.50%, the valuation metrics indicate that Kothari Ferment. is positioned favorably in the market. The PEG ratio of 0.00 further emphasizes the potential for growth relative to its price, reinforcing the view that Kothari Ferment. is undervalued in the current market environment.