Is Natraj Proteins overvalued or undervalued?

As of 1 October 2025, the valuation grade for Natraj Proteins has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued. Key ratios include a PE ratio of -14.61, an EV to EBITDA of 24.88, and a price to book value of 0.45, which reflect poor profitability and high valuation multiples relative to its earnings potential.
In comparison to its peers, Natraj Proteins stands out negatively; for instance, Gokul Agro has a PE ratio of 22.93 and an EV to EBITDA of 11.35, while Guj. Ambuja Exp shows a more attractive valuation with a PE of 20.52 and an EV to EBITDA of 11.07. The company's recent stock performance has been underwhelming, with a year-to-date return of -12.56%, contrasting sharply with the Sensex's positive return of 3.64% during the same period, further reinforcing the overvaluation narrative.