Is Natraj Proteins overvalued or undervalued?

As of 1 October 2025, the valuation grade for Natraj Proteins has moved from expensive to very expensive. The company is currently overvalued, with a PE ratio of -14.61, an EV to EBITDA ratio of 24.88, and a Price to Book Value of 0.45. These ratios indicate significant financial distress, particularly reflected in the negative return on capital employed (ROCE) of -14.61% and return on equity (ROE) of -2.89%.
In comparison to peers, Gokul Agro is also classified as very expensive with a PE ratio of 22.93, while Guj. Ambuja Exp is rated as attractive with a PE ratio of 20.52. The stark contrast in valuation and performance metrics suggests that Natraj Proteins is not only overvalued but also underperforming relative to its peers. Additionally, the company's stock has underperformed against the Sensex over various time frames, including a year-to-date decline of 12.56% compared to a 3.64% gain in the Sensex, reinforcing the notion of its overvaluation.