Is Natraj Proteins overvalued or undervalued?

As of 23 September 2025, the valuation grade for Natraj Proteins has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of -15.18, an EV to EBITDA of 25.26, and a price to book value of 0.47. These ratios suggest that the company's financial performance is not aligning well with its market valuation.
In comparison to its peers, Natraj Proteins stands out unfavorably; for instance, Gokul Agro has a PE ratio of 22.97 and an EV to EBITDA of 11.37, while Guj. Ambuja Exp is valued attractively with a PE ratio of 21.02 and an EV to EBITDA of 11.37. Notably, Natraj's negative ROCE of -14.61% and ROE of -2.89% further emphasize its challenges in generating returns. Although the stock has outperformed the Sensex over the past week and month, its longer-term performance has lagged significantly, reinforcing the conclusion that it is currently overvalued.