Is Kothari Ferment. overvalued or undervalued?

As of 7 November 2025, Kothari Ferment. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of -52.17, an EV to EBITDA of 11.09, and a Price to Book Value of 1.30. In comparison to its peers, Hindustan Unilever has a PE ratio of 53.63 and an EV to EBITDA of 33.22, while Nestle India shows a PE of 81.21 and an EV to EBITDA of 49.92, indicating that Kothari Ferment. is significantly undervalued relative to these industry leaders.
Despite its recent stock performance lagging behind the Sensex, with a year-to-date return of -34.61% compared to the Sensex's 6.50%, the fundamental ratios suggest that Kothari Ferment. presents a compelling investment opportunity. The company's low PEG ratio of 0.00 further reinforces its undervaluation, indicating potential for future growth that is not currently reflected in its stock price.