Is Natraj Proteins overvalued or undervalued?

As of 16 September 2025, Natraj Proteins has moved from an attractive to a very expensive valuation grade. The company is currently overvalued, reflected by a PE ratio of -14.72, an EV to EBITDA of 24.95, and a Price to Book Value of 0.46. These ratios indicate significant financial distress, particularly with a negative return on capital employed (ROCE) of -14.61% and a return on equity (ROE) of -2.89%.
In comparison to its peers, Natraj Proteins stands out unfavorably; for instance, Gokul Agro has a PE ratio of 22.21 and an EV to EBITDA of 11.00, while Guj. Ambuja Exp shows a PE of 21.15 with an EV to EBITDA of 11.45. The stark contrast in these ratios highlights the overvaluation of Natraj Proteins in the edible oil industry. Furthermore, the company's stock has underperformed against the Sensex, particularly over the year, with a return of -19.59% compared to the Sensex's -0.73%.