Is Natraj Proteins overvalued or undervalued?

As of 12 June 2025, Natraj Proteins has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its financial metrics, with a PE ratio of -10.90 and an EV to EBITDA ratio of 48.49, which are significantly higher than many of its peers. Additionally, the ROCE stands at -10.95%, indicating inefficiency in generating returns on capital employed.
In comparison to its peers, Guj. Ambuja Exp has a PE ratio of 21.46 and an EV to EBITDA of 11.99, while Gokul Agro is considered expensive with a PE of 16.73 and an EV to EBITDA of 8.04. These ratios suggest that Natraj Proteins is not only underperforming but also trading at a premium compared to more efficiently run companies in the edible oil sector. The company's recent stock performance has also lagged behind the Sensex, with a year-to-date return of -4.73% compared to the Sensex's 4.55%, further reinforcing the notion that it may be overvalued at this time.