Is Kothari Ferment. overvalued or undervalued?

As of 6 November 2025, Kothari Ferment. has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued, particularly given its PE ratio of -52.52 and a Price to Book Value of 1.31. Additionally, the EV to EBITDA stands at 11.14, which is relatively high compared to its peers.
In comparison to notable peers, Hindustan Unilever has a PE ratio of 54.11 and an EV to EBITDA of 33.56, while Nestle India shows a PE of 81.85 and an EV to EBITDA of 50.32. These figures indicate that Kothari Ferment. is trading at a significant discount in terms of PE, but the negative PE suggests underlying issues that may not justify its current price. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -34.17% compared to the Sensex's 6.62%, reinforcing the notion of overvaluation.