Is Natraj Proteins overvalued or undervalued?

As of 14 October 2025, the valuation grade for Natraj Proteins has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation relative to its fundamentals. The company is currently considered overvalued. Key ratios include a PE ratio of -16.48, an EV to EBITDA of 25.36, and a Price to Book Value of 0.48, which highlight significant concerns regarding profitability and valuation metrics.
In comparison to peers, Gokul Agro has a fair valuation with a PE ratio of 19.6, while Guj. Ambuja Exp is rated attractive with a PE of 19.66. These comparisons suggest that Natraj Proteins is trading at a substantial premium despite its negative earnings, which is a notable outlier in the industry. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -8.30% compared to the Sensex's 4.98%, reinforcing the assessment of overvaluation.