Is Kothari Ferment. overvalued or undervalued?

As of 17 November 2025, Kothari Ferment. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current financial metrics. The PE ratio stands at -26.22, indicating negative earnings, while the EV to EBITDA ratio is 12.88, which is relatively high compared to industry standards. Additionally, the ROCE is only 2.23%, and the ROE is negative at -5.24%, suggesting inefficiencies in generating returns for shareholders.
In comparison to peers, Kothari Ferment. is significantly undervalued against companies like Hindustan Unilever, which has a PE ratio of 53.89, and Nestle India, with a PE ratio of 81.88. This stark contrast highlights the challenges Kothari Ferment. faces in attracting investor confidence. Furthermore, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -36.13% compared to the Sensex's 8.72%, reinforcing the notion that Kothari Ferment. is currently overvalued in the market.