Is Lotus Chocolate overvalued or undervalued?
As of October 14, 2025, Lotus Chocolate is fairly valued with a PE ratio of 137.76, an EV to EBITDA of 73.30, and a ROE of 16.08%, despite its higher PE compared to peers like Hindustan Unilever and Nestle India, while its PEG ratio suggests potential undervaluation in growth expectations, and it has underperformed the Sensex with a year-to-date decline of 27.34%.
As of 14 October 2025, the valuation grade for Lotus Chocolate has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 137.76, an EV to EBITDA of 73.30, and a ROE of 16.08%. In comparison to its peers, Lotus Chocolate's PE ratio is significantly higher than Hindustan Unilever's 55.24 and Nestle India's 75.31, both of which are considered very expensive. Despite the high valuation ratios, the company's PEG ratio stands at 0.00, indicating potential undervaluation in terms of growth expectations. Notably, Lotus Chocolate's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 27.34% compared to the Sensex's gain of 4.98%, reinforcing the notion of a fair valuation amidst market volatility.
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